Green Corporation is authorized to issue 120,000 common shares and 80,000, $4 preferred shares. At Jan 1,
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Question:
Green Corporation is authorized to issue 120,000 common shares and 80,000, $4 preferred shares. At Jan 1, 2019, the company’s shareholders' equity included the below:
24,000 common shares valued at $192,000
7,000 preferred shares valued at $77,000
Retained earnings was $54,000
During 2019 the net profit earned by Green Corp. was $23,000. The company did not issue any dividends during 2019. Also during 2019, the company issued the below:
On Apr 4, 2019 - 9,000 common shares for $10 each
On Jun 10, 2019 - 4,000 preferred shares for $16 each and
On Aug 7, 2019 - 11,000 common shares for land valued at $121,000.
- Prepare the journal entries to record the above share issues.
- Prepare the shareholders equity part of the balance sheet in Dec 31, 2019.
Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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