Please use completed sheets to complete Part C in Excel. Thank you!
Please use the info provided to complete this sheet in excel.
Credit Debit 38,000 1 Journal Entry Solution: 2/1/2020 Cash (2000 x $19) Common Stock Paid in Capital in Excess Common 20,000 18,000 Exhibit 1: 1. On February 1, the company issued 2,000 shares of their $10 PAR value Common Stock for $19 per share. 2. On May 1, the company issued 1,000 shares of 3% Cumulative Preferred Stock for $115 per share. The PAR value of this preferred Stock is $100 per share. 3. On October 1, the company issued an additional 500 shares of their $10 PAR value Common Stock for $21 per share. 4. On December 1, the company decided to purchase 200 shares of its Common Stock from shareholders to be held in treasury for Employee Bonuses. The company uses the Cost Method to account for Treasury Stock. They paid $22 per share for the stock. 5. On December 20, the company declared a Preferred Dividend that totaled $3,000. 6. The company paid the dividends on December 29, 2020. 7. The company has asked you ate the journal entry to close the income statement accounts (presented in Exhibit 2) on December 31, 2 115,000 5/1/2020 Cash (1000 x $115) Preferred Stock Paid in Capital in Excess Preferred 100,000 15,000 10,500 3 10/1/2020 Cash (500 x $21) Common Stock Paid in Capital Excess Common 5,000 5,500 4 4,400 12/1/2020 Treasury Stock Cash 4,400 Exhibit 2: Kites for You, Inc. Pre-Closing (and Before Equity JEs) Account Balances YE 2020 3,000 5 12/20/2020 Retained Earnings Dividends Payable Preferred 3,000 Credit 6 12/29/2020 Dividend Payable Preferred 3,000 Cash 3,000 1,932 643,970 17,500 Debit Cash 316,754 Accounts Receivable 193,191 Allowance for Doubtful Accounts Merchandise Inventory 53,440 Prepaid Insurance 250 Building 240,000 Accumulated Depreciation--Building Display Equipment 1,200 Accumulated Depreciation--Display Equipment Accounts Payable Salaries and Wages Payable Bank Loan Payable Mortgage Note Payable Common Stock (10,000 shares issued at PAR value) Retained Earnings Sales Revenue Cost of Goods Sold 373,503 Salaries & Wages Expense 127,000 Supplies Expense 2,390 Insurance Expense 1,990 Bad Debt Expense 1,650 Depreciation Expense 6,120 Interest Expense 12,656 Income Tax Expense 24,919 350 7,265 5,290 150,000 166,400 100,000 262,355 643,970 7 12/31/2020 Service Revenue Costs of Goods Sold Salaries & Wages Expense Supplies Expense Insurance Expense Bad Debt Expense Depreciation Expense Interest Expense Income Tax Expense Retained Earnings (To close income statement accounts) 373,503 127,000 2,390 1,990 1,650 6,120 12,656 24,919 93,742 1,355,062 1,355,062 Sales Revenue 643,970 643,970 PCB Accounts Payable 7,265 PCB 7,265 Bad Debt Expense 1,650 1,650 PCB 4,400 3,000 PCB Cash 316,754 38,000 115,000 10,500 472,853.61 Retained Earnings 3,000 262,355 PCB 93,742 353,097 Salaries & Wages Payable 5,290 PCB 5,290 Cost of Goods Sold PCB 373,503 373,503 O epreciation Expens 6,120 6,120 PCB Common Stock 100,000 PCB 20,000 5,000 125,000 Accounts Receivable 193,191 193, 191 PCB Dividends Payable 3.000 3,000 Salaries & Wage Expense PCE 127,000 127,000 Interest Expense 12,656 12,656 PCB Allowance for Doubtful Accounts 1,932 PCB 1,932 APIC-Common 18,000 5,500 Bank Loan Payable 150,000 PCB 150,000 Supplies Expense 2,390 2,390 23,500 PCB PCB Income Tax Expense 24,919 24,919 (0) PCB Merchandise Inventory 53,440 53,440 Mortgage Payable 166,400 PCB 166,400 Preferred Stock 100.000 100,000 Insurance Expense 1,990 1,990 PCB PCB Prepaid Insurance 250 250 APIC-Preferred 15,000 15,000 PCB Building 240,000 240,000 Treasury Stock 4,400 4,400 Accum Deprec-Building 17,500 PCB 17.500 PCB Display Equipment 1,200 1,200 Total Assets 941,153.00 941,153 Total Liab Total Equity Accum Depre-Display Equip 350 PCB 350 A3. Based on your results in Parts A1 and A2, create the Statement of Stockholders' Equity for Kites for You, Inc. for the Year Ending 2020 in proper format. (14 points) Your Column Totals should match the appropriate T-Account balances in Part A2. Your Total Equity should match the total equity calculated in Part A2. Note there are no check figures for Part A3. Solution
