Question

Stockholders' Equity Transactions, Journal Entries, and T-Accounts

The stockholders equity of Black Corporation at January 1 follows:

8 percent preferred stock, $100 par value, 20,000 shares

authorized; 5,000 shares issued and outstanding...........................................................................$500,000

Common stock, $1 par value, 100,000 shares

authorized; 40,000 shares issued and outstanding........................................................................40,000

Paid-in capital in excess of par value-Preferred stock....................................................................200,000

Paid-in capital in excess of par value-Common stock.....................................................................800,000

Retained earnings...........................................................................................................................625,000

Total Stockholders' Equity................................................................................................$2,165,000

The Following transactions, among others, occurred during the year:

Jan. 1  Announced a 4-for-1 common stock split, reducing the par value of common stock to $0.25 per share.

Mar. 31 Converted $75,000 face value of convertible bonds payable (the book value of the bonds was $83,000) to common stock. Each $1,000 bond converted to 110 shares of common stock. (Record common stock entry in whole dollars. Round up.)

June 1 Acquired equipment with a fair market value of $90,000 in exchange for 300 shares of preferred stock.

Sept. 1  Acquired $15,000 shares of common stock for cash at $20 per share.

Nov. 21 Issued 5,000 shares of common stock at $22 per share

Dec. 28 Sold 1,000 treasury shares at $23 per share

  31  Closed net income of $145,000, to the retained Earnings Account.

required

a. Set-up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances

b. Prepare Journal Entries for the given transactions and post them to the T-accounts (set up any additional T-accounts needed.) Do not prepare the journal entry for the Dec.31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts.

P11-9A. Stockholders' Equity Section of the Balance Sheet Using your analysis from P11-8A, prepare the stockholders' equity section of the Black Corporation's balance sheet.

Answer Every Question please!!

Stockholders' Equity Transactions, Journal Entries, and T-Accounts The stockholders equity of Black Corporation at January 1 follows: 8 percent...
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