ACC 423 Week 2 Team Assignments

ACC 423 Week 2 Team - Name/Team Problem P15-1(Equity Transactions and Statement Preparation Course ACC 423-Intermediate Accoumting III Date On

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Unformatted text preview: Name/Team: Problem: P15-1 (Equity Transactions and Statement Preparation) Course: ACC 423-Intermediate Accoumting III Date: On January 5, 2007, Drabek Corporation received a charter granting the right to issue 5,000 shares of $100 p nonparticipating preferred stock, and 50,000 shares of $5 par value common stock. It then completed these tr Jan. 11- Issued 20,000 shares of common stock at $16 per share. Feb. 1- Issued to Rob Nen Corp. 4,000 shares of preferred stock for the following assets: machinery with a a factory building with a fair market value of $110,000; and land with an appraised value of $270 July 29- Purchased 1,800 shares of common stock at $19 per share. (Use cost method.) Aug. 10- Sold the 1,800 treasury shares at $14 per share. Dec. 31- Declared a $0.25 per share cash dividend on the common stock and declared the preferred divide Dec. 31- Closed the Income Summary account. There was a $175,700 net income. a) Record the journal entries for the transactions listed above. Jan. 11, 07 Cash 320,000 Common Stock 100,0 Paid-in Capital in Excess of Par-Common 220 Feb. 1, 07 Machinery 50,000 Factory 110,000 Land 270,000 Preferred Stock (4,000 × $100) 400,0 Paid-in Capital in Excess of Par-Preferred 30 July 29, 07 Treasury Stock 34,200 Cash 34,2 Aug. 10, 07 Cash 25,000 Retained Earnings* 9,000 Treasury Stock 34,2 *(Retained Earnings is debited because there was no Paid-in Capital from Treasury Stock.) Dec. 31, 07 Retained Earnings 37,000 Cash Dividend Payable-Common Cash Dividend Payable-Preferred 32 Dec. 31, 07 Income Summary 175,700 Retained Earnings 175 b) Prepare the stockholders' equity section of Drabek Corporation's balance sheet as of December 31, 2007. Drabek Corporation Stockholders' Equity Section December 31, 2007 Preferred stock-par value $100 per share, 8% cumulative and nonparticipating, 5,000 shares authorized, 4,000 shares issued and outstanding Paid-in capital in excess of par-preferred Common stock-par value $5 per share, 50,000 shares authorized, 20,000 shares issued...
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This note was uploaded on 02/19/2010 for the course ACC 362 taught by Professor Wormer during the Spring '07 term at University of Phoenix.

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ACC 423 Week 2 Team - Name/Team Problem P15-1(Equity Transactions and Statement Preparation Course ACC 423-Intermediate Accoumting III Date On

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