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Stock Holders Equity Section

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P12-3A

The stockholders' equity accounts of Jajoo Corporation on January 1, 2008, were as follows.

Preferred Stock (10%, $100 par, noncumulative, 5,000 shares authorized) $ 300,000
Common Stock ($5 stated value, 300,000 shares authorized) 1,000,000
Paid-in Capital in Excess of Par Value-Preferred Stock 20,000
Paid-in Capital in Excess of Stated Value-Common Stock 425,000
Retained Earnings 488,000
Treasury Stock-Common (5,000 shares) 40,000
During 2008, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb. 1 Issued 3,000 shares of common stock for $25,000.
Mar. 20 Purchased 1,500 additional shares of common treasury stock at $8 per share.
June 14 Sold 4,000 shares of treasury stock-common for $36,000.
Sept. 3 Issued 2,000 shares of common stock for a patent valued at $17,000.
Dec. 31 Determined that net income for the year was $340,000.

Journalize the transactions and the closing entry for net income. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J1 for the posting reference.) (If answer is zero, please enter 0. Do not leave any fields blank.)

Complete the stockholders' equity section at December 31, 2008. (List entries by the format used in the text. Enter all amounts as positive amounts and subtract where necessary.)
Compute the book value per share of common stock at December 31, 2008. (Round answer to 2 decimal places, e.g. 10.50.)

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Solution Summary

The solution journalize the transactions and the closing entry for net income; enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts;Complete the stockholders' equity section at December 31

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