Question

Prairie Corp. completed the following transactions in 2014, the first year of operation:
1. Issued 15,000 shares of $10 par common stock at par.
2. Issued 5,000 shares of $50 stated value preferred stock at $52 per share.
3. Purchased 800 shares of common stock as treasury stock for $12 per share.
4. Declared a 5 percent cash dividend on preferred stock.
5. Sold 300 shares of treasury stock for $16 per share.
6. Paid the cash dividend on preferred stock that was declared in Event 4.
7. Earned revenue of $80,000 and incurred operating expenses of $48,000.
8. Appropriated $6,000 of retained earnings.

Required
a. Organize the transaction in accounts under an accounting equation.
b. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2014.



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  • CreatedMay 22, 2014
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