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The stockholders' equity accounts for Pedro Corporation

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(a) Journalize the transactions and the closing entry for net income.
(b) Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts.
(c) Prepare a stockholders' equity section at December 31, 2002.
(d) Compute the book value per share of common stock at December 31, 2002, assuming the preferred stock does

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(See attached file for full problem description)

The stockholders' equity accounts of Pedro Corporation on January 1, 2002, were as follows:

Preferred stock $100 Par value 10% noncumulative $300,000 5,000 shares authorized
Common stock $5 Par value 1,000,000 300,000 shares authorized
Paid-in capital in excess of par value - P/S 15,000
Paid-in capital in excess of par value - C/S 400,000
Retained earnings 488,000
Treasury stock (5,000 shares) 40,000 5,000 shares

During 2002, the corporation had the following transactions and events pertaining to its stockholders' equity:
Feb 1 Issued common stock for cash 4,000 shares $25,000 cash
Mar 20 Purchased additional shares of treasury stock 1,000 shares $8 per share
Jun 14 Sold treasury stock for cash 4,000 shares $34,000 cash
Sep 3 Issued shares of common stock for patent 2,000 shares $13,000 patent value
Dec 31 Determined net income for the year $215,000

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The solution has journal entries for various transactions affecting stockholders equity and the preparation of the stockholders equity section of the balance sheet of Pedro Corporation

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The stockholders' equity accounts of Pedro Corporation...

Excell Problem P12-3B

Journalize and post transactions; prepare stockholders' equity section; compute book value.

The stockholders' equity accounts of Pedro Corporation on January 1, 2002, were ar 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- P/S 15,000
Paid-in capital in excess of par value - C/S 400,000
Retained earnings 488,000
Treasury stock (5,000 shares) 40,000

During 2002, the corporation had the following transactions and events pertaining to its stockholders' equity:
Feb1 Issued 4,000 shares of common stock for $250,000.
March 20 Purchased 1,000 additional shares of common treasury stock at $8 per share
Jun 14 Sold 4,000 shares of treasury stock - common for $34,000.
Sept 3 Issued 2,000 shares of common stock for a patent valued at $13,000.
Dec 31 Determined that net income for the year was $215,000.

Instructions:
A. Journalize the transactions and the closing entry for net income.
B. Enter the beginning balances in the accounts and post the journal entries to the stockholders
Equity.
C. Prepare a stockholders' equity section of the balance sheet at December 31, 2002.
D. Compute the book value per share of common stock at December 31, 2002, assuming the preferred stock does not have a call price.

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