Ehrlich Corporation is authorized to issue 20,000,000 shares of $10 par value common stock and 1,000,000...

 

Transcribed Image Text:

Ehrlich Corporation is authorized to issue 20,000,000 shares of $10 par value common stock and 1,000,000 shares of its 6% cumulative $100 par value preferred stock. During 2020, it had the following transactions: Jan. 5 $80/share. Issued 25,000 shares of common stock for Feb. 8 Issued 7,000 shares of its preferred stock in an appraised value of exchange for land with $1,000,000 Apr. 1 $80 per share. May 9 Resold 500 shares of its common stock purchased on April 1 at $85 per share Purchased 1,000 shares of its common stock at June 2 Resold 400 shares of its common stock purchased on April 1 at $70 per share. Dec. 25 Declared the preferred stock dividend. Reported net income of $2,000,000 Dec. 31 INSTRUCTIONSS: а. Prepare the journal entries to record the above transactions. b. Prepare Ehrlich's stockholders' equity section of its balance sheet as of Dec 31, 2020. Make sure you show all proper share information. Ehrlich Corporation is authorized to issue 20,000,000 shares of $10 par value common stock and 1,000,000 shares of its 6% cumulative $100 par value preferred stock. During 2020, it had the following transactions: Jan. 5 $80/share. Issued 25,000 shares of common stock for Feb. 8 Issued 7,000 shares of its preferred stock in an appraised value of exchange for land with $1,000,000 Apr. 1 $80 per share. May 9 Resold 500 shares of its common stock purchased on April 1 at $85 per share Purchased 1,000 shares of its common stock at June 2 Resold 400 shares of its common stock purchased on April 1 at $70 per share. Dec. 25 Declared the preferred stock dividend. Reported net income of $2,000,000 Dec. 31 INSTRUCTIONSS: а. Prepare the journal entries to record the above transactions. b. Prepare Ehrlich's stockholders' equity section of its balance sheet as of Dec 31, 2020. Make sure you show all proper share information.

Answer rating: 100% (QA)

Requirement a Date Account Titles and Explanation Debit Credit Cash 25000 shares 80 2000000 Jan05 ... View the full answer