Use the following stock and equity transactions: 1. Equity Financing Inc (EFI) begins the accounting period...

Transcribed Image Text:

Use the following stock and equity transactions: 1. Equity Financing Inc (EFI) begins the accounting period on Jan 1 with 10,000 shares of common stock authorized with a par value of $.50 per share. There are currently 4,0000 shares issued and outstanding. 2. There are beginning balances of $2,000 in Common Stock, Par Value; $48,000 in APIC, Common Stock and $50,000 in Retained Earnings. 3. On January 31, EFI sells 2000 shares of Common Stock for cash at $15 per share. 4. On March 31, EFI completes a 2 for 1 REVERSE stock split (2 shares now become 1) 5. On June 15th EFI repurchases 500 shares of its own stock for $10 per share. 6. On November 15th, EFI declares a cash dividend payable in the next accounting period of $1 per share outstanding. 7. Net income for the accounting period was $12,500 **Required** Prepare the journal entries for #3, #5, and #6 Use proper form. You will need to include in your PDF upload. EQUITY Cont'd Based on the EFI transactions above... What are the # of shares issued? What are the # of shares outstanding? What is the par value per share? $ EQUITY Cont'd Based on the EFI transactions... Prepare the Equity section of the Balance sheet, in proper format. Include in your PDF upload Since this will require manual grading on my part, enter the amount you came up with for total equity to determine how you did before grading is complete. I will give Partial Credit, where Canvas does not. Use the following stock and equity transactions: 1. Equity Financing Inc (EFI) begins the accounting period on Jan 1 with 10,000 shares of common stock authorized with a par value of $.50 per share. There are currently 4,0000 shares issued and outstanding. 2. There are beginning balances of $2,000 in Common Stock, Par Value; $48,000 in APIC, Common Stock and $50,000 in Retained Earnings. 3. On January 31, EFI sells 2000 shares of Common Stock for cash at $15 per share. 4. On March 31, EFI completes a 2 for 1 REVERSE stock split (2 shares now become 1) 5. On June 15th EFI repurchases 500 shares of its own stock for $10 per share. 6. On November 15th, EFI declares a cash dividend payable in the next accounting period of $1 per share outstanding. 7. Net income for the accounting period was $12,500 **Required** Prepare the journal entries for #3, #5, and #6 Use proper form. You will need to include in your PDF upload. EQUITY Cont'd Based on the EFI transactions above... What are the # of shares issued? What are the # of shares outstanding? What is the par value per share? $ EQUITY Cont'd Based on the EFI transactions... Prepare the Equity section of the Balance sheet, in proper format. Include in your PDF upload Since this will require manual grading on my part, enter the amount you came up with for total equity to determine how you did before grading is complete. I will give Partial Credit, where Canvas does not.

Answer rating: 100% (QA)

1 Journal Entries Cash AC 30000 Treasury Stock AC 30... View the full answer