Question

Use the data from E8-46B to prepare the shareholders’ equity section of the balance sheet at May 31. Retained earnings at month-end are $105,000.
In E8-46B, Minute Magazine Publications, Inc., is authorized to issue both preferred and common stock. Minute Magazine’s preferred stock is $155 par, 10% preferred stock. During the first month of operations, the company engaged in the following transactions related to its stock. For each of the following transactions, show how it would be recorded in the accounting equation:
May 1 Issued 50,000 shares of $1.00 par value common stock for cash at $12 per share
May 9 Issued 2,000 shares of preferred stock at par
May 17 Purchased 2,500 shares of common stock to be held in the treasury for $15 per share
May 21 Issued 35,000 shares $1.00 par value common stock for cash at $18 per share
May 28 Sold 2,000 shares of the treasury stock purchased on the 17th for $20 per share
May 31 Declared a $39,000 dividend



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  • CreatedSeptember 01, 2014
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