Tony and Suzie purchased land costing $500,000 for a new camp in January 2014. Now they need

Question:

Tony and Suzie purchased land costing $500,000 for a new camp in January 2014. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 8%, $10 par preferred, and $1 common.
When the company began on July 1, 2012, Tony and Suzie each purchased 10,000 shares of $1 at $1 per share. The following transactions affect stockholders' equity during 2014, its third year of operations:
Jul. 2 Issue an additional 100,000 shares of for $12 per share.
Sep. 10 Repurchase 10,000 shares of its own (i.e., treasury stock) for $15 per share.
Nov. 15 Reissue 5,000 shares of treasury stock at $16 per share.
Dec. 1 Declare a cash on its of $115,000 ($1 per share) to all stockholders of record on December 15. The is payable on December 31.
Required:
1. Record each of these transactions.
2. Great Adventures has net income of $150,000 in 2014. Retained earnings at the beginning of 2014 was $140,000. Prepare the stockholders' equity section of the for Great Adventures as of December 31, 2014.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...