Question 1 Not complete Marked out of 1.00 Flag question Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity of Summit Corporation at January 1 follows: 7 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding $500,000 Common stock $15 par value, 100,000 shares authorized: 40,000 shares issued and outstanding 600,000 Paid-in capital in excess of par value-Preferred stock 24,000 Paid-in capital in excess of par value-Common stock 360,000 Retained earnings 325,000 Total Stockholders' Equity $1,809,000 . The following transactions, among others, occurred during the year: Jan. 12 Announced a 3-for-1 common stock split, reducing the par value of the common stock to $5 per share. The authorization was increased to 300,000 shares. Mar 31 Converted $41.000 face value of convertible bonds payable (the book value of the bonds was $43,000) to common stock. Each $1,000 bond converted to 125 shares of common stock. June 1 Acquired equipment with a fair market value of $65,000 in exchange for 500 shares of preferred stock. Sept. 1 Acquired 10,000 shares of common stock for cash at $11 per share. Oct 12 Sold 1.500 treasury shares at $13 per share. Nov. 21 Issued 5,000 shares of common stock at $12 per share. Dec 28 Sold 1,200 treasury shares at $10 per share. 31 Closed net income of $84,000 to the Retained Earnings account Rentired Required Prepare journal entries for the given transactions and post them to the T-accounts. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. Prepare the stockholders' equity section of the balance sheet at December 31. Journal entries T-Accounts Stockholder's equity section Date General Journal Description (Memorandum) Common Stock split 3 for 1. Debit Credit Jan. 12 Mar 31 $ $ $ $ Premium on Bonds Payable Common Stock To record conversions of bonds. Jun.01 Paid-in-Capital in Excess of Par Value - Preferred Stock issued preferred stock in exchange for equipment. Sept.01 Purchased treasury stock. Oct.12 Treasury Stock - Common Sold treasury stock. Mar.31 $ $ Premium on Bonds Payable Common Stock To record conversions of bonds. Jun.01 Paid-in-Capital in Excess of Par Value - Preferred Stock Issued preferred stock in exchange for equipment. Sept.01 Purchased treasury stock. Oct 12 Treasury Stock - Common Sold treasury stock. Nov.21 - Common Stock . Issued common stock. Dec. 28 Paid-in-Capital from Treasury Stock - To record sale of treasury stock Check reporuLUCTUIVCD cquity >CELIUM CTC CTCONCEL Journal entries T-Accounts Stockholder's equity section Cash Bonds Payable Premium on Bonds Payable Mar.31 Mar.31 Sept.01 Oct 12 Nov.21 Dec 28 Equipment Common Stock Preferred Stock 500,000 Jun 01 Beg, bal Jun 01 600,000 (3 for 1 split) Beg. bal Jan.12 Mar 31 Nov.21 Bal Bal. Paid-in-Capital in Excess of Par Value - Preferred Stock Beg. bal 24,000 Jun 01 Paid-in-Capital from Treasury Stock Oct.12 Paid-in-Capital in Excess of Par Value - Common Stock Beg. bal 360,000 Mar 31 Nov.21 Dec.28 Bal. Bal. Bal. Treasury Stock - Common Sept.01 Oct.12 Equipment Preferred Stock Jun.01 500,000 Beg. bal Common Stock 600,000 (3 for 1 split) Beg. bal Jun.01 Bal Jan.12 Mar.31 Nov.21 Bal. Paid-in-Capital from Treasury Stock Oct.12 Paid-in-Capital in Excess of Par Value - Preferred Stock Beg, bal 24,000 Jun 01 Bal. Paid-in-Capital in Excess of Par Value - Common Stock Beg. bal 360,000 Mar 31 Nov.21 Dec. 28 Bal. Bal. Treasury Stock - Common Sept.01 Oct.12 Dec.28 Bal. Retained Earnings 325,000 Beg, bal Dec. 31 Bal. . Prepare the stockholders' equity section of the balance sheet at December 31. Journal entries T-Accounts Stockholder's equity section Do not use negative signs with your answers. Stockholders' Equity Paid in Capital $ Additional Paid-in-Capital Paid-in-Capital in Excess of Par value-Preferred Stock Paid-in-Capital in Excess of Par value - Common Stock Total Paid-in-Capital . $ Check Question 1 Not complete Marked out of 1.00 Flag question Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity of Summit Corporation at January 1 follows: 7 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding $500,000 Common stock $15 par value, 100,000 shares authorized: 40,000 shares issued and outstanding 600,000 Paid-in capital in excess of par value-Preferred stock 24,000 Paid-in capital in excess of par value-Common stock 360,000 Retained earnings 325,000 Total Stockholders' Equity $1,809,000 . The following transactions, among others, occurred during the year: Jan. 12 Announced a 3-for-1 common stock split, reducing the par value of the common stock to $5 per share. The authorization was increased to 300,000 shares. Mar 31 Converted $41.000 face value of convertible bonds payable (the book value of the bonds was $43,000) to common stock. Each $1,000 bond converted to 125 shares of common stock. June 1 Acquired equipment with a fair market value of $65,000 in exchange for 500 shares of preferred stock. Sept. 1 Acquired 10,000 shares of common stock for cash at $11 per share. Oct 12 Sold 1.500 treasury shares at $13 per share. Nov. 21 Issued 5,000 shares of common stock at $12 per share. Dec 28 Sold 1,200 treasury shares at $10 per share. 31 Closed net income of $84,000 to the Retained Earnings account Rentired Required Prepare journal entries for the given transactions and post them to the T-accounts. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. Prepare the stockholders' equity section of the balance sheet at December 31. Journal entries T-Accounts Stockholder's equity section Date General Journal Description (Memorandum) Common Stock split 3 for 1. Debit Credit Jan. 12 Mar 31 $ $ $ $ Premium on Bonds Payable Common Stock To record conversions of bonds. Jun.01 Paid-in-Capital in Excess of Par Value - Preferred Stock issued preferred stock in exchange for equipment. Sept.01 Purchased treasury stock. Oct.12 Treasury Stock - Common Sold treasury stock. Mar.31 $ $ Premium on Bonds Payable Common Stock To record conversions of bonds. Jun.01 Paid-in-Capital in Excess of Par Value - Preferred Stock Issued preferred stock in exchange for equipment. Sept.01 Purchased treasury stock. Oct 12 Treasury Stock - Common Sold treasury stock. Nov.21 - Common Stock . Issued common stock. Dec. 28 Paid-in-Capital from Treasury Stock - To record sale of treasury stock Check reporuLUCTUIVCD cquity >CELIUM CTC CTCONCEL Journal entries T-Accounts Stockholder's equity section Cash Bonds Payable Premium on Bonds Payable Mar.31 Mar.31 Sept.01 Oct 12 Nov.21 Dec 28 Equipment Common Stock Preferred Stock 500,000 Jun 01 Beg, bal Jun 01 600,000 (3 for 1 split) Beg. bal Jan.12 Mar 31 Nov.21 Bal Bal. Paid-in-Capital in Excess of Par Value - Preferred Stock Beg. bal 24,000 Jun 01 Paid-in-Capital from Treasury Stock Oct.12 Paid-in-Capital in Excess of Par Value - Common Stock Beg. bal 360,000 Mar 31 Nov.21 Dec.28 Bal. Bal. Bal. Treasury Stock - Common Sept.01 Oct.12 Equipment Preferred Stock Jun.01 500,000 Beg. bal Common Stock 600,000 (3 for 1 split) Beg. bal Jun.01 Bal Jan.12 Mar.31 Nov.21 Bal. Paid-in-Capital from Treasury Stock Oct.12 Paid-in-Capital in Excess of Par Value - Preferred Stock Beg, bal 24,000 Jun 01 Bal. Paid-in-Capital in Excess of Par Value - Common Stock Beg. bal 360,000 Mar 31 Nov.21 Dec. 28 Bal. Bal. Treasury Stock - Common Sept.01 Oct.12 Dec.28 Bal. Retained Earnings 325,000 Beg, bal Dec. 31 Bal. . Prepare the stockholders' equity section of the balance sheet at December 31. Journal entries T-Accounts Stockholder's equity section Do not use negative signs with your answers. Stockholders' Equity Paid in Capital $ Additional Paid-in-Capital Paid-in-Capital in Excess of Par value-Preferred Stock Paid-in-Capital in Excess of Par value - Common Stock Total Paid-in-Capital . $ Check