Pauline and some of her friends invested money to start a company named GIRLZ Corporation. The following
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Pauline and some of her friends invested money to start a company named GIRLZ Corporation. The following transactions occurred during
Jan The corporate charter authorized shares of $ par value cumulative preferred stock and unlimited shares of $ par value common stock.
Jan Issued common shares at $ per share to Pauline and other investors.
Jan Issued another common shares to Pauline in exchange for her services in organizing the corporation. The stockholders agreed that the services were worth $
Jan Issued preferred shares for $
Jan Issued common shares in exchange for equipment. The fair market value of the equipment could not be readily determined, but the market price of the common stock on this date was $ per share.
Nov The first annual dividend on preferred stock declared.
Dec Paid the dividends declared on preferred stock.
Dec Estimated income tax expense of $ However, the actual amount of income tax due for this period based on tax laws is determined to be $
GIRLZ Corporation generated a net income of $after income tax during the year. The company uses the retained earnings account to record dividends.
a Prepare the journal entries to record the above transactions in
b Prepare the statement of retained earnings for the year ended December
c Prepare the stockholders\' equity section of the balance sheet as at December
Related Book For
Interpreting and Analyzing Financial Statements
ISBN: 978-0132746243
6th edition
Authors: Karen P. Schoenebeck, Mark P. Holtzman
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