January 1, 2018, a company is authorized to issue 200,000 shares $1.00 par common stock and...

January 1, 2018, a company is authorized to issue 200,000 shares $1.00 par common stock and 5,000 shares $200 par 5% cumulative and non-participating preferred stock. The transactions took place in 2018

Jan 14: issue 5,000 shares of common stock at $17 per share

Feb 2: issue 4,000 shares of preferred stock in exchange for building with a fair market value of $800,000

July 6: Re-purchased 2,000 shares of common stock at $18 per share (cost method)

Aug 15: sold 2,000 of the treasury shares at $19 per share

Dec 31: declared preferred dividends and a common stock dividends of $2.00 per share

Dec 31: close the income summary account ($150,000 of net income)

Prepare Journal entries for each transaction and prepare the statement of changes in OE for the 2018 year end.

Expert Solution

Journal entries:

Statement of changes in OE(Owners' Equity) for the year ended 2018.

ekkarill92 answered 10 months ago

January 1, 2018, Apple is authorized to issue 200,000 shares $1.00 par common stock and 5,000...

January 1, 2018, Apple is authorized to issue 200,000 shares $1.00 par common stock and 5,000 shares $200 par 5% cumulative and non-participating preferred stock. The transactions took place in 2018 Jan 14: issue 5,000 shares of common stock at $17 per share Feb 2: issue 4,000 shares of preferred stock in exchange for building with a fair market value of $800,000 July 6: Re-purchased 2,000 shares of common stock at $18 per share (cost method) Aug 15: sold 2,000...

Belo Corporation is authorized to issue 900,000 shares of $10 par value common stock, and 200,000...

Belo Corporation is authorized to issue 900,000 shares of $10 par value common stock, and 200,000 shares of 9%, $100 par value preferred stock. On January 1, 2018, the second year of operations, the retained earnings balance was $80,000. During 2018, the company had the following stock transactions. Jan. 7 Issued 150,000 shares of common stock at $15 per share. May. 5 Attorneys for the company accepted 250 shares of common stock as payment for legal services rendered. The legal...

Carp Corporation is authorized to issue 2,000,000 shares of $1 par value common stock. During 2018,...

Carp Corporation is authorized to issue 2,000,000 shares of $1 par value common stock. During 2018, the company has the stock transactions listed below. Journalize the transactions for Carp Corporation in spaces provided below. Jan. 15 Issued 700,000 shares of stock at $7 per share. Sept. 5 Purchased 20,000 shares of common stock for the treasury at $8 per share. Dec. 6 Declared a $0.50 per share dividend to the remaining stockholders of record on December 20, payable January 3,...

2016 Info: On January 1, we are authorized to issue 100,000 shares of our 1.00 common...

2016 Info: On January 1, we are authorized to issue 100,000 shares of our 1.00 common stock. We issued 50,000 shares for $80/share; and issued a $100,000 bond for either 1) $96,000 or 2) 104,000. The market rate was 9% and the stated rate was 10%. The bond is a 10 year bond that pays interest on 1/1 of each year. Inventory includes the following: Beginning balance of $0. On January 3 we purchased $22,000 (1000 units at $22) worth of inventory. 1,000 units of inventory was...

1 Corp X is authorized to issue 1,000,000 shares of Common Stock Par $1 No Entry...

1 Corp X is authorized to issue 1,000,000 shares of Common Stock Par $1 No Entry since it was just authorized but not issued. 2 Corporation X issued 500,000 shares of Common Stock Par $1 for $ 8 per share 3 Corporation X issued 1,500,000 shares of Common Stock Par $1 for $10 per share 4 Corporation X reacquired 1,000,000 shares of their Common Stock Par $1 for $ 2 5 Sold 500,000 shares of treasury stock at $8 per...

Truman Company is authorized to issue 1,000,000 shares of its $5 par value common stock and...

Truman Company is authorized to issue 1,000,000 shares of its $5 par value common stock and 500,000 shares of its $10 par value preferred stock. During 2019, the company had the following select transactions. Issued 200,000 shares of common stock for $35 per share Issued 50,000 shares of preferred stock for $55 per share Reacquired 80,000 shares of common stock at $30 per shares Reissued 50,000 shares from treasury for $33 per share Reissued 30,000 shares from treasury for $23...

Deck company was authorized to issue $250,000 shares of $24 par value common stock on December...

Deck company was authorized to issue $250,000 shares of $24 par value common stock on December 28, 2017. The following transactions occurred in 2017: January 14 Issued 45,000 shares of common stock for $30 per share Jan 29 Gave the lawyers of the company 25,000 shares of common stock for their services in organizing the company. The board of directors valued services at $744,000 Jan 30 Exchanged 50,000 shares of common stock for the following assets at the indicated fair...

ABC Company is authorized to issue 100,000 shares of its $10 par value common stock and...

ABC Company is authorized to issue 100,000 shares of its $10 par value common stock and as of February 1 had 25,000 shares issued and outstanding. On March 1, ABC bought 1,000 of its shares for the treasury at $25 each. Required—Prepare the journal entries that ABC should have made to record the transactions described in each of the following independent scenarios: Scenario #1 (1) On March 11, ABC issued 100 of the treasury shares at $30 each. (2) On...

On January 1, 2010 Fiberglass Industries was authorized to issue 750,000 shares of 3.00 par common...

On January 1, 2010 Fiberglass Industries was authorized to issue 750,000 shares of 3.00 par common stock, and 40,000 shares of 4% $25 par cumulative preferred stock. Required: Using the information below, prepare the Stockholders' Equity Section of the Balance Sheet at December 31, 2011. 2010: Jan 4th issued 100,000 shares common stock at $5/ share. Jan 5th issued 10,000 shares preferred stock at $40/ share. Feb 1st Issued 60,000 shares of common stock in exchange for a shop with...

Accounting Creations was authorized to issue 3,000,000 shares of $1 par Common Stock but has only...

Accounting Creations was authorized to issue 3,000,000 shares of $1 par Common Stock but has only issued 650,000 shares of common stock as of 12/31/2018. No new shares were issued during 2018. 1.On the “Adjusting Journal Entries” worksheet, prepare in journal entry form all adjusting and correcting journal entries based on the following information. All information was provided to you as of 12/31/2018. (Round all numbers to the nearest dollar). Label journal entries a through t. a. Based on your...

Question