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Using the information below, put the transactions in pro forma and complete the required journal entries. July 1 The owner is concerned about unlimited liability
Using the information below, put the transactions in pro forma and complete the required journal entries. July The owner is concerned about unlimited liability being a sole proprietorship. Therefore, the company is converting to a corporation. The owner will receive shares of $ par common stock for the original investment. The balance in owners capital is $ July Issued shares of common stock, $ par value. July Declared a cash dividend of $ per share for the outstanding shares of common stock. Remember to utilize the correct payable account. July Paid out the dividend in cash. Prepare a statement of Retained Earnings. Current year net income is $ There is no prior year retained earnings since the company just became a corporation.
Using the information below, put the transactions in pro forma and complete the required journal entries.
July The owner is concerned about unlimited liability being a sole proprietorship. Therefore, the company is converting to a corporation. The owner will receive shares of $ par common stock for the original investment. The balance in owners capital is $
July Issued shares of common stock, $ par value.
July Declared a cash dividend of $ per share for the outstanding shares of common stock. Remember to utilize the correct payable account.
July Paid out the dividend in cash.
Prepare a statement of Retained Earnings. Current year net income is $ There is no prior year retained earnings since the company just became a corporation.
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