Preparation of stockholders

Preparation of stockholders - Preparation of stockholders'...

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Preparation of stockholders' equity section of the balance sheet Anderson Company had the following transactions during 2009, its first year in business: January April October December In addition, Anderson Company had $150,000 of net income for the year and, during the year, declared and distributed a cash dividend of $37,500. Required: Prepare the stockholders' equity section of the December 31, 2009, balance sheet. Note: In the final answer, use "Additional Paid-in Capital" to combine all the additional Paid-In Capital accounts.
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To solve this problem, the transactions must first be journalized and the effect on the ledger accounts analyzed. Then, the stockholders' equity section can be completed. January 2: Issued 45,000 shares of $10 par common stock for $15 per share. Total proceeds from issuance= Number of common shares = 45,000 × $15 = $675,000 Total par value of the shares issued= Number of common shares × Par value of common stock = 45,000 × $10 = $450,000 Debit Cash : Cash, an asset account, is debited (increased) for the total proceeds from the
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This note was uploaded on 11/01/2010 for the course ACC 281 281 taught by Professor Hong during the Fall '10 term at University of Phoenix.

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Preparation of stockholders - Preparation of stockholders'...

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