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    lilyrose's Avatar
    lilyrose Posts: 1, Reputation: 1
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    #1

    Nov 20, 2007, 12:42 PM
    Equity transactions and statement preparation
    On jan 5, '03 Drabek Corp received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock and 50,000 shares of $5 par value common stock. It then completed these transactions.

    Jan 11
    Issued 20,000 shares of common stock at $16 per share.
    Feb 1
    Issued to Robb Nen corp 4,000 shares of preferred stock for the following assests: machinery w/ fair market value of $50,000; a factory building w/ fair market value of $110,000 and land w/ an appraised value of $270,000.
    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 dividend.
    Dec 31
    closed the income summary account. There was a $175,700 net income.
    INSTRUCTIONS:
    a) Record the journal entries for the transactions listed above.
    b) Prepare the stockholders equity section of Drabek Corp. balance sheet as of dec 31, 2003
    moondancefouru's Avatar
    moondancefouru Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Feb 3, 2008, 07:30 PM
    On jan 5, '03 Drabek Corp received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock and 50,000 shares of $5 par value common stock. It then completed these transactions.

    Jan 11
    Issued 20,000 shares of common stock at $16 per share.
    Feb 1
    Issued to Robb Nen corp 4,000 shares of preferred stock for the following assests: machinery w/ fair market value of $50,000; a factory building w/ fair market value of $110,000 and land w/ an appraised value of $270,000.
    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 dividend.
    Dec 31
    closed the income summary account. There was a $175,700 net income.
    INSTRUCTIONS:
    a) Record the journal entries for the transactions listed above.
    b) Prepare the stockholders equity section of Drabek Corp. balance sheet as of dec 31, 2003

    --------------------------------------------------------------------------------
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