In: Accounting
P 11-2A. Stockholders' Equity: Transactions and Balance Sheet Presentation | |||||||||
Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred: | |||||||||
April 1 | Issued 80,000 shares of common stock at $20 cash per share. | ||||||||
April 3 | Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000. | ||||||||
April 8 | Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000 | ||||||||
April 20 | Issued 6,000 shares of preferred stock for cash at $60 per share. | ||||||||
a. Prepare journal entries to record the above transactions. | |||||||||
b. Prepare the stockholders' equity section of the balance sheet at April 30. Assume that the net income for April is $51,000. | |||||||||
a. | Debit Account | Credit Account | Debit Amount | Credit Amount | |||||
April 1 | |||||||||
April 3 | |||||||||
April 8 | |||||||||
April 20 | |||||||||
b. | Stockholders’ Equity | ||||||||
Paid‑in Capital | |||||||||
Additional Paid‑in capital | |||||||||
Total Paid‑in Capital | |||||||||
Total Stockholders’ Equity | |||||||||