The following represents the Stockholders' Equity accounts of Mag Corp. as of December 31, 2000.
Common Stock, $10 par value, 100,000 shares authorized, 55,000 shares issued & outstanding  $550,000
Preferred Stock, $100 par value, 20,000 shares authorized, 4,000 shares issued & outstanding   $400,000
Paid-in Capital in Excess of par value, preferred  $15,000
Paid-in Capital in Excess of par value, common   $400,000
Retained Earnings  $290,000
The company had the following transactions during the period January 1, 2001 to December 31, 2001
March 1,  Issued 5,000 shares of common shares for $20 per share cash
April 5,  Declared a cash dividend of $2 per shere to its preferred shareholders, with a date of record of April 20
April 20,  Date of Record
May 5,  Paid the preferred cash dividends
August 1,  Declared and distributed (on the same day) a 5% stock dividend on common stock. The market value of the stock was $2.5 per share.
Nov. 1,  Issued 500 shares of Preferred Stock for a land appraised at $100,000
Dec. 31  Company incurred a net income of $80,000 and closed it to Retained Earnings.
Required:
a) Record the transactions listed above in the journal a entry format.
b) Prepare the Stockholders' Equity section of the Balance Sheet as of December 31, 2001.

Answer rating: 100% (QA)

Part a Journal Entries for the transactions Mar 1 2001 Cash100000 Common stock5000 Paidin capital in ... View the full answer