Make a statement of shareholders equity based off the following journal entries. The retained earnings are $25,771.
Question:
Make a statement of shareholders equity based off the following journal entries. The retained earnings are $25,771.
8/1 You filed a charter with the State of Louisiana to form your accounting corporation. The charter authorizes you to issue 50000 shares of $2 par common stock. The state charged you a $175 fee to file the charter. Since your business is not yet approved, you had to pay this fee using personal funds. (no entry required)
9/1 You received your charter from the State of Louisiana and officially opened your business. Your first order of business was to become a shareholder in your accounting corp. You purchased 5000 shares of common stock by issuing a check to your business for $50,000. You used this money to open a checking account at First Funds Bank.
Financial reporting, financial statement analysis and valuation a strategic perspective
ISBN: 978-0324789416
7th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw