In January 2011, Delgado Corporation was organized and authorized to issue 2,000,000 shares of no-par common stock and 50,000 shares of 5 percent, $50 par value, noncumulative preferred stock. The stock-related transactions for the first year’s operations were as follows:

1. For each of the preceding transactions, enter in the blanks provided the account numbers and dollar amounts (as shown in the example) for the account(s) debited and credited. The account numbers are as follows: 110, Cash; 120, Land; 121, Building; 220, Dividends Payable; 305, Preferred Stock; 310, Common Stock; 312, Additional Paid-In Capital; 313, Paid-In Capital, Treasury Stock; 340, Retained Earnings; 341, Dividends; 350, Treasury Stock, Common; 510, Start-up and Organization Costs.
2. Why is the stockholders’ equity section of the balance sheet an important consideration in analyzing the performance of acompany?

  • CreatedSeptember 10, 2014
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