Scenario:
Matthew Mulatto and his brother John Mulatto plans to open a business. The major decision they face is how to organize the business. They expect to generate a massive profit during the first year. Although they have enough to start the business now as a partnership, they believe cash flow may be an issue as they grow. They believe that the corporate form of operation will be best option. They have hired you as a consultant and seek your advice.
- Issued ________shares of common stock. Stock has par value of ___ per share and was issued at $____ per share. (please refer to table below and use only the info in line with your surname initial in the blank/underlined space
- Issued _______ shares of preferred stock at par value as payment in exchange for legal services. (please refer to table below and use only the info in line with your surname initial in the blank/underlined space)
- Exchanged ______ shares of common stock for land with an appraised value of $______ and a building with an appraised value of $_____. (please refer to table below and use only the info in line with your surname initial in the blank/underlined space)
- Earned Net income $______. (please refer to table below and use only the info in line with your surname initial in the blank/underlined space)
- Paid dividends to preferred shareholders as well as $2 per share to common stockholders.
Using the info above and as a guide:
- Prepare Mulatto Companys Stockholders equity section of the balance sheet at December 31, 2020. (Hint!!!!!!!) The following information must be clearly stated/shown:
- information on par values,
- the number of shares authorized and issued where necessary.
- the sub total for the total paid in capital.
- Retained earnings.
- total stockholders equity.
Paragraph NBJXH Styles $ 900,000.00 Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: ment. are or quickly A. Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net income to retained earnings Dividend paid. Close out dividend to retained earnings ply Heading styles . B. Prepare Mulatto Company's Stockholders equity section of the balance sheet at December 31, 2020. (Hint!!!!!!!) The following information must be clearly stated/shown: information on par values, the number of shares authorized and issued where necessary the sub total for the total paid in capital Retained earnings total stockholders' equity opac.. Fel 94 Title Subtitle Subtle Em... Paragraph Styles . Earned Net income $ (please refer to table below and use only the info in line with your surname initial in the blank/underlined space) Surname Initial APIE V CORY KQ, M, F SW.GZ D, I, LU NBJXH Net Income $ 500,000.00 $ 600,000.00 $ 650,000.00 $ 750,000.00 $ 820.000,00 $ 900,000.00 Styles 3 Surname Initial APIE V C.ORY K, Q, M, F. S, W. GZ DT.LU NBJ, XH # of shares issued 2,000 5,000 8,000 10,000 12,000 14,000 Exchanged shares of common stock for land with an appraised value of $ and a building with an appraised value of $ (please refer to table below and use only the info in line with your surname initial in the blank/underlined space) Surname Initial # of shares issued Value of land Value of Building APIE V 100.000 $ 250,000.00 $ 450,000.00 C.O.R.Y 120.000 $ 300,000.00 $ 500,000.00 IK, Q. M. 160,000 $ 400 000.00 $ 650,000.00 S. WGZ 200.000 $ 500,000.00 $ 700,000.00 D. I. L U. 220.000 $ 600,000.00 $ 350,000.00 IN. B. J.XH 260,000 $ 650,000.00 $ 500,000.00 (please refer to table below and use only the info in line with your . Earned Net income $ Manuel will use the initial M and that person should only use the info presented in line with the heading with their surname initial. You are not allowed to use info associated other initials other than that of your own as this will result in the forfeiture of the grade.) Issued shares of common stock. Stock has par value of per share and was issued at $ per share. (please refer to table below and use only the info in line with your surname initial in the blank/underlined space) Surname Initial # of shares issued Par value Issue Price APIE V 5,000 $ 0.01$ 30.00 C.O.R Y 15,000 $ 0.10 $ 30.00 KQ, M, F 45,500 $ 0.30 $ 30.00 SW.GZ 65,000 $ 0.40 $ 30.00 DT, LU 80,000 $ 0.50 $ 30.00 NBJXH 100.000 $ 0.60 $ 30.00 Issued shares of preferred stock at par value as payment in exchange for legal services (please refer to table below and use only the info in line with your surname initial in the blank/underlined space) Paragraph NBJXH Styles $ 900,000.00 Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: ment. are or quickly A. Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net income to retained earnings Dividend paid. Close out dividend to retained earnings ply Heading styles . B. Prepare Mulatto Company's Stockholders equity section of the balance sheet at December 31, 2020. (Hint!!!!!!!) The following information must be clearly stated/shown: information on par values, the number of shares authorized and issued where necessary the sub total for the total paid in capital Retained earnings total stockholders' equity opac.. Fel 94 Title Subtitle Subtle Em... Paragraph Styles . Earned Net income $ (please refer to table below and use only the info in line with your surname initial in the blank/underlined space) Surname Initial APIE V CORY KQ, M, F SW.GZ D, I, LU NBJXH Net Income $ 500,000.00 $ 600,000.00 $ 650,000.00 $ 750,000.00 $ 820.000,00 $ 900,000.00 Styles 3 Surname Initial APIE V C.ORY K, Q, M, F. S, W. GZ DT.LU NBJ, XH # of shares issued 2,000 5,000 8,000 10,000 12,000 14,000 Exchanged shares of common stock for land with an appraised value of $ and a building with an appraised value of $ (please refer to table below and use only the info in line with your surname initial in the blank/underlined space) Surname Initial # of shares issued Value of land Value of Building APIE V 100.000 $ 250,000.00 $ 450,000.00 C.O.R.Y 120.000 $ 300,000.00 $ 500,000.00 IK, Q. M. 160,000 $ 400 000.00 $ 650,000.00 S. WGZ 200.000 $ 500,000.00 $ 700,000.00 D. I. L U. 220.000 $ 600,000.00 $ 350,000.00 IN. B. J.XH 260,000 $ 650,000.00 $ 500,000.00 (please refer to table below and use only the info in line with your . Earned Net income $ Manuel will use the initial M and that person should only use the info presented in line with the heading with their surname initial. You are not allowed to use info associated other initials other than that of your own as this will result in the forfeiture of the grade.) Issued shares of common stock. Stock has par value of per share and was issued at $ per share. (please refer to table below and use only the info in line with your surname initial in the blank/underlined space) Surname Initial # of shares issued Par value Issue Price APIE V 5,000 $ 0.01$ 30.00 C.O.R Y 15,000 $ 0.10 $ 30.00 KQ, M, F 45,500 $ 0.30 $ 30.00 SW.GZ 65,000 $ 0.40 $ 30.00 DT, LU 80,000 $ 0.50 $ 30.00 NBJXH 100.000 $ 0.60 $ 30.00 Issued shares of preferred stock at par value as payment in exchange for legal services (please refer to table below and use only the info in line with your surname initial in the blank/underlined space)
