lilyrose
Nov 20, 2007, 12:42 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
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