This problem continues the Canyon Canoe Company situation from Chapter 12. Amber Wilson, owner of Canyon Canoe

Question:

This problem continues the Canyon Canoe Company situation from Chapter 12. Amber Wilson, owner of Canyon Canoe Company, decides to start a new company that will be operated as a corporation, Outdoor Equipment Incorporated (OEI). This company will sell outdoor clothing and equipment.
Canyon Canoe Company had the following select transactions in 2021:
Jan. 1 Issued 50,000 shares of $1 for a total of $200,000.
10 Issued 20,000 shares of 4%, $3 preferred stock in exchange for land with a market value of $70,000.
Dec. 15 Declared total cash dividends of $15,000.
20 Declared an 8% when the market value of the stock was $4.50 per share.
31 Paid the cash dividends.
31 Distributed the stock Journalize the transactions.
2. Calculate the balance in Retained Earnings on December 31, 2021. Assume net income for the year was $417,000.
3. Prepare the stockholders' equity section of the as of December 31, 2021?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...