shamekatonya Posts: 1, Reputation: 1 New Member   #1 Oct 25, 2011, 01:12 PM

Accounting finance Daviscorporation was authorized to issue 100,000 share of $10 par common stock and 50,000 shares of $50 par, 6 percent, cumulative preferred stock. Davis Corporation completed the following transactions during the first two years of operation. 2012 Jan 2 Issued 5,000 shares of $10 par common stock for $28 per share Jan 15 Issued 1,000 shares of $50 par preferred stock for $70 per share. Feb 14 Issued 15,000 shares of $10 par common stock for $30 per share Dec 31 During the year, earned $170,000 of cash service revenue and paid $110,000 of cash operating expenses. Dec 31 Declared the cash dividend on outstanding shares of preferred stock for 2012. The dividend will be paid on January 31 to stockholders of record on January 15, 2013. 2013 Jan 31 Paid cash dividend declared on December 31 2012 Mar 1 Issued 2,000 shares of $50 par preferred stock for $58 per share Jan 1 Purchased 500 shares of common stock as treasury stock at $43 per share Dec 31 During the year, earned $210,000 of cash service revenue and paid $175,000 of cash operating expenses. Dec 31 Declared the dividend on the preferred stock and a $.60 per share dividend on the common stock. Required: A) Organize the transation data in accounts under an accounting equation. B) Prepare the stockholders equity section of the balance sheet at December 31, 2012 C) Prepare the balance sheet at December 31, 2013.

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