In January 2010, Janas Corporation was organized and authorized to issue 1,000,000 shares of no-par common stock
Question:
In January 2010, Janas Corporation was organized and authorized to issue 1,000,000 shares of no-par common stock and 25,000 shares of 5 percent, $50 par value, noncumulative preferred stock. The stock-related transaction for the first years operations were as follows:
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Required
1. For each of the above transactions, enter in the blanks provided the account numbers and dollar amounts (as shown in the example) for the account(s) debited and credits. The account numbers are listed below.
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 are performance of acompany?
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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
1Account numbers and dollar amounts provided Debited Credited Account Number Dollar Amoun...View the full answer
