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Polar Energy Company is authorized by its charter to issue 500,000 shares of $10 per value common stock and 100,000 shares at 10% noncumulative and

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Polar Energy Company is authorized by its charter to issue 500,000 shares of $10 per value common stock and 100,000 shares at 10% noncumulative and nonparticipating, $100 per value preferred stock The company completed following transactions. Feb. 5 Issued 70,000 shares of common stock at par cash 28 Over the corporation's promoters 3, 750 shares of common stock for their services in organizing the corporation. The directors valued the services at $40,000. Mar. 3 Exchanged 44,000 shares of common stock for the following assets with the indicated reliable market values; land, $40,000, buildings, $210,000, and machinery, $156,000. Dee 31 Closed the Income Summary account. A $27,000 less was incurred. Jan. 23 Issued 4,000 shares of preferred stock par for each. Dec 31 Closed the Income Summery account. A $98,000 net income was earned. Jan. 1 The board of directors declared a 10% cash dividend to preferred shares and $0.20 per share cash dividend to outstanding common shares parable on February 5 to the January 24 stockholders of record. Feb. 5 Paid the previously declared dividends. Dec 31 Closed Income Summary and the Dividends accounts. A $150,000 net income was earned. Prepare general journal entries to record transitions. Prepare the stockholders equity section of a balance sheet as of the close of business on December 31, 2013. Polar Energy Company is authorized by its charter to issue 500,000 shares of $10 per value common stock and 100,000 shares at 10% noncumulative and nonparticipating, $100 per value preferred stock The company completed following transactions. Feb. 5 Issued 70,000 shares of common stock at par cash 28 Over the corporation's promoters 3, 750 shares of common stock for their services in organizing the corporation. The directors valued the services at $40,000. Mar. 3 Exchanged 44,000 shares of common stock for the following assets with the indicated reliable market values; land, $40,000, buildings, $210,000, and machinery, $156,000. Dee 31 Closed the Income Summary account. A $27,000 less was incurred. Jan. 23 Issued 4,000 shares of preferred stock par for each. Dec 31 Closed the Income Summery account. A $98,000 net income was earned. Jan. 1 The board of directors declared a 10% cash dividend to preferred shares and $0.20 per share cash dividend to outstanding common shares parable on February 5 to the January 24 stockholders of record. Feb. 5 Paid the previously declared dividends. Dec 31 Closed Income Summary and the Dividends accounts. A $150,000 net income was earned. Prepare general journal entries to record transitions. Prepare the stockholders equity section of a balance sheet as of the close of business on December 31, 2013

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