In: Accounting
On January 5, 2020, Marin Corporation received a charter
granting the right to issue 5,100 shares of $100 par value, 7%
cumulative and nonparticipating preferred stock, and 48,600 shares
of $10 par value common stock. It then completed these
transactions.
Jan. 11 | Issued 19,900 shares of common stock at $16 per share. | |
Feb. 1 | Issued to Sanchez Corp. 4,100 shares of preferred stock for the following assets: equipment with a fair value of $52,500; a factory building with a fair value of $166,000; and land with an appraised value of $252,000. | |
July 29 | Purchased 1,800 shares of common stock at $18 per share. (Use cost method.) | |
Aug. 10 | Sold the 1,800 treasury shares at $15 per share. | |
Dec. 31 | Declared a $0.45 per share cash dividend on the common stock and declared the preferred dividend. | |
Dec. 31 |
Closed the Income Summary account. There was a $172,200 net income. |
1. Record the journal entries for the transactions listed above.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts. Record entries in the order displayed in the problem
statement. Round answers to 0 decimal places, e.g.
$5,275.)
2. Prepare the stockholders’ equity section of Marin
Corporation’s balance sheet as of December 31, 2020.
(Enter account name only and do not provide descriptive
information.)
Date | Account Tittle- Marin Corporation | Debit | Credit |
11-Jan | Cash ( 19900Share X $16) | 318400 | |
Paid in Capital fro Common stock | 119400 | ||
Common stock(19900X10) | 199000 | ||
1-Feb | Equipment | 52500 | |
Factory Building | 166000 | ||
Land | 252000 | ||
Paid in Capital fro Preferred stock | 429500 | ||
Preferred stock(4100X100) | 41000 | ||
29-July | Treasury stock ( 1800X 18) | $32,400.00 | |
Cash | $32,400.00 | ||
10-Aug | Cash (1800*15) | 27000 | |
Retained Earning | 5400 | ||
Treasury stock ( 1800X 18) | 32400 | ||
10-Dec | Retained Earning | $37,655.00 | |
Dividend Payable (19900*0.45)+(4100*100*7%) |
$37,655.00 | ||
31-Dec | Income Summary | $172,200.00 | |
Retained Earning | $172,200.00 |
Statement showing stockholder Equity | |
Common Stock | $199,000 |
Preferred Stock | $41,000 |
Paid in Capital in excess of par - Common Stock | $119,400 |
Paid in Capital in excess of par - Preferred Stock | $429,500 |
Total Paid in Capital | $788,900 |
Retained earnings (172200-37655-5400) | $129,145 |
Total stock Holder Equity | $918,045 |