Davis Corporation was authorized to issue 100,000 shares of $10 par common stock and 50,000 shares of
Question:
Davis Corporation was authorized to issue 100,000 shares of $10 par common stock and 50,000 shares of $50 par 6 percent, cumulative preferred stock. Davis Corporation completed the following transactions during its first two years of operation
2012
Jan. 2 - Issued 5,000 shares of $10 par common stock for $28 per share.
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.
31 - Declared the cash dividend on outstanding shares preferred stock for 2012. The dividend will be paid on January 31 to stockholders of record on January 15, 2013.
2013
Jan. 31 - Paid the cash dividend declared on December 31, 2012.
Mar. 1 - Issued 2,000 shares of $50 par preferred stock for $58 per share.
June 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.
31 - Declared the dividend on the preferred stock and a $0.60 per share dividend on the common stock.
a. Organize the transaction data in accounts under an accounting equation
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor-Yi