The stockholders equity of Fremantle Corporation at January 1 follows 8 Percent preferred stock, $100 par value, 20,000 shares authorized 4,000 shares issued and outstanding $400,000 Common stock, $1 par value, 10,000 shares authorized 40,000 shares issued and outstanding 40,000 Paid in capital in excess of par value Preferred stock 200,000 Paid in capital in excess of par value Common stock 800,000 Retained earnings 560,000 Total Stockholders' Equity $2,000,000 The following transactions, among others, occurred during the year Jan 1 Announced a 2 for 1 common stock split, reducing the par value of the common stock to $0 50 per share Mar 31 Converted $90,000 face value of convertible bonds payable (the book value of the bonds was $94,000) to common stock Each $1,000 bond converted to 125 shares of common stock June 1 Acquired equipment with a fair market value of $46,000 in exchange for 300 shares of preferred stock Sept 1 Acquired 11,000 shares of common stock for cash at $21 per share Nov 21 Issued 5,000 shares of common stock at $23 cash per share Dec 28 Sold 1,000 treasury shares at $25 per share Dec 31 Closed net income of $103,000, to the Retained Earnings account Required a Set up T accounts for the stockholders equity accounts as of the beginning of the year and enter the January 1 balances HINT Complete part b below prior to entering any additional T account data b Prepare journal entries for the given transactions and post them to the T accounts above in part a 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 b Prepare journal entries for the given transactions and post them to the T accounts above in part a 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

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Posted on Jul 23, 2024

The stockholders equity of Fremantle Corporation at January 1 follows: 8 Percent preferred stock, $100 par value, 20,000 shares authorized; 4,000 shares issued and outstanding

The stockholders equity of Fremantle Corporation at January 1 follows:

8 Percent preferred stock, $100 par value, 20,000 shares
authorized; 4,000 shares issued and outstanding	$400,000
Common stock, $1 par value, 10,000 shares
authorized; 40,000 shares issued and outstanding	40,000
Paid-in capital in excess of par value-Preferred stock	200,000
Paid-in capital in excess of par value-Common stock	800,000
Retained earnings	560,000
Total Stockholders' Equity	$2,000,000

The following transactions, among others, occurred during the year:

Jan.	1	Announced a 2-for-1 common stock split, reducing the par value of the common stock to $0.50 per share.
Mar.	31	Converted $90,000 face value of convertible bonds payable (the book value of the bonds was $94,000) to common stock. Each $1,000 bond converted to 125 shares of common stock.
June	1	Acquired equipment with a fair market value of $46,000 in exchange for 300 shares of preferred stock.
Sept.	1	Acquired 11,000 shares of common stock for cash at $21 per share.
Nov.	21	Issued 5,000 shares of common stock at $23 cash per share.
Dec.	28	Sold 1,000 treasury shares at $25 per share.
Dec.	31	Closed net income of $103,000, to the Retained Earnings account.

Required

a. Set up T-accounts for the stockholders equity accounts as of the beginning of the year and enter the January 1 balances.

HINT: Complete part b. below prior to entering any additional T-account data.

b. Prepare journal entries for the given transactions and post them to the T-accounts above in part a. 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.