Gerstner Corporation is authorized to issue 10,000 shares of $40 par value, 10% preferred stock and 200,000 shares of $5 par value common stock. On January 1, 2014, the ledger contained the following stockholders’ equity balances.
|
Preferred Stock (5,000 shares) Don't use plagiarized sources. Get Your Custom Essay on
prepare a stockholders rsquo equity section at december 31 2014 618676
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page
|
$200,000 |
|
Paid-in Capital in Excess of Par—Preferred Stock |
60,000 |
|
Common Stock (70,000 shares) |
350,000 |
|
Paid-in Capital in Excess of Par—Common Stock |
700,000 |
|
Retained Earnings |
300,000 |
During 2014, the following transactions occurred.
|
Feb.1 |
Issued 1,000 shares of preferred stock for land having a fair value of $65,000. |
|
Mar.1 |
Issued 2,000 shares of preferred stock for cash at $60 per share. |
|
July 1 |
Issued 20,000 shares of common stock for cash at $5.80 per share. |
|
Sept.1 |
Issued 800 shares of preferred stock for a patent. The asking price of the patent was $60,000. Market price for the preferred stock was $65 and the fair value for the patent was indeterminable. |
|
Dec. 1 |
Issued 10,000 shares of common stock for cash at $6 per share. |
|
Dec.31 |
Net income for the year was $210,000. No dividends were declared. |
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 accounts. (Use J2 as the posting reference.)
(c)Prepare a stockholders’ equity section at December 31, 2014.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
