Question 1 Not complete Marked out of 1.00 Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity of Summit Corporation at January 1 follows: 7 Percent preferred stock, 5100 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. Converted $40,000 face value of convertible bonds payable (the book value of the bonds was $43,000) to common stock. Each $1,000 bond converted to 130 shares Mar 31 common stock June 1 Acquired equipment with a fair market value of $70,000 in exchange for 500 shares of preferred stock. Sept. 1 Acquired 10,000 shares of common stock for cash at $13 per share. Oct. 12 Sold 1,500 treasury shares at 515 per share. Nov. 21 Issued 5,000 shares of common stock at $14 per share. Dec 28 Sold 1,200 treasury shares at $11 per share. 31 Closed net income of $91,000 to the Retained Earnings account. 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 transactio 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. but post the appropriate amount Prepare the stockholders' equity section of the balance sheet at December 31 Credit Debit Jan. 12 $ 0 $ $ $ 0 0 0 0 0 0 0 General Journal Date Description (Memorandum) Common Stock split 3 for 1. Mar 31 Bonds Payable Premium on Bonds Payable Common Stock Pald-in-Capital in Excess of Par Value - Common Stock To record conversions of bonds. Jun 01 Equipment Preferred Stock Paid-in-Capital in Excess of Par Value - Preferred Stock Issued preferred stock in exchange for equipment Sept.01 Treasury Stock - Common Cash Purchased treasury stock. Oct.12 Cash Treasury Stock - Common Paid-in-Capital from Treasury Stock Sold treasury stock. Nov.21 Cash Common Stock Paid-in-Capital in Excess of Par Value - Common Stock Issued common stock. Dec.28 Paid-in-Capital from Treasury Stock 0 0 0 0 0 0 0 0 0 O 0 0 To record sale of treasury stock