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Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. When the company began on July 1, 2018, Tony and Suzie each purchased 12,500 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during 2020, Its third year of operations: July 2 Issue an additional 120,000 shares of common stock for $10 per share. September 10 Repurchase 12,000 shares of its own common stock (i.e., treasury stock) for $13 per share. November 15 Reissue 6,000 shares of treasury stock at $14 per share. December 1 Declare a cash dividend on its common stock of $139,000 ($1 per share) to all stockholders of record on December 15 December 31 Pay the cash dividend declared on December 1. Required 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit July 02, 2020 Cash 1,200,000 Common stock 100,000 1,080,000 Additional paid-in capital September 10 2020 2 Treasury stock 156,000 Cash 156,000 November 15 2020 Cash 84,000 Treasury stock 75,000 Additional paid-in capital 5,000 mber 01,Dividends 2020 Dece 4 115,000 Dividends payable 115,000 mber 31, 2020 Dece Dividends payable 115,000 Cash 115,000 2. Great Adventures has net income of $141,000 in 2020. Retained earnings at the beginning of 2020 was $131,000. Prepare the stockholders' equity section of the balance sheet for Great Adventures as of December 31, 2020. (Amounts to be deducted should be indicated with a minus sign.) GREAT ADVENTURES, INC. Balance Sheet (Stockholders' Equity Section) December 31, 2020 Stockholders' equity: Common stock Additional paid-in capital Preferred stock Additional paid-in capital $139,000 139,000 Total paid-in capital Treasury stock 1,838,000 2,116,000 102,000 Total stockholders' equity $ 2,218,000
