Stockholders' Equity: Transactions and Balance Sheet Presentation

Beaker Corporation was organized on July 1, with an authorization of 50,000 shares of $4 no-par value preferred stock ($4 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders' equity occurred:

July 1 Issued 32,000 shares of common stock at $18 cash per share. Issued 3,600 shares of common stock in exchange for equipment with a fair market value of $64,000. 12 15 Issued 6,000 shares of preferred stock for cash at $45 per share. Required a. Prepare journal entries to record the foregoing transactions. General Journal Date Description Debit Credit ul.01 Cash 576,000$ Common Stock 320,000 Paid-in-Capital in Excess of Par Value-Common Stock 256,000 Issued shares of common stock. Jul. 12 Equipment 64,000 V Common Stock 6,000 Paid-in-Capital in Excess of Par Value - Common Stock 28,000 Issued common stock for equipment. ul.15 Cash 270,000 Preferred Stock 270,000 Issued shares of preferred stock b. Prepare the stockholders' equity section of the balance sheet at July 31. The net income for July is 39,000. Stockholders' Equity Paid in Capital Preferred Stock 0 X Common Stock ,356,000X s Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Common Stock O X Total Paid-in-Capital V 0 X Retained Earnings 0 X Total Stockholders' Equity