Journal entries, stockholders' equity section
Not what you're looking for?
Vanowski, Inc., was organized and authorized to issue 10,000 shares of $100 par value, 9 percent preferred stock and 100,000 shares of no-par, $5 stated value common stock on July1, 20xx. Stock-related transactions for Vanowski are as follows:
July 1: Issued 20,000 shares of common stock at $11 per share.
July 1: Issued 1,000 shares of common stock at $11 per share for services rendered in connection with the organization of the company.
July 2: Issued 2,000 shares of preferred stock at par value for cash.
Jul 10: Issued 5,000 shares of common stock for land on which the asking price was $70,000. Market value of the stock was $12. Management wishes to record the land at full market value of the stock.
August 2: Purchased 3,000 shares of its common stock at $13 per share.
August 10: Declared a cash dividend for on month on the outstanding preferred stock and $.02 per share on common stock outstanding payable on August 22 to stockholders of record on August 12.
August 12: Date of record for cash dividends.
August 22: Paid cash dividends.
Record transaction in journal form and prepare the stockholders' equity section of the balance sheet as it would appear on August 31, 20xx. Net income for July and August was $23,000.
Purchase this Solution
Solution Summary
The solution explains the journal entries and the preparation of stockholders' equity section of Balance Sheet
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Introduction to Finance
This quiz test introductory finance topics.