Homework answers / question archive / On January 5, 2020, Shamrock Corporation received a charter granting the right to issue 5,100 shares of $100 par value, 9% cumulative and nonparticipating preferred stock, and 49,000 shares of $10 par value common stock

On January 5, 2020, Shamrock Corporation received a charter granting the right to issue 5,100 shares of $100 par value, 9% cumulative and nonparticipating preferred stock, and 49,000 shares of $10 par value common stock

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On January 5, 2020, Shamrock Corporation received a charter granting the right to issue 5,100 shares of $100 par value, 9% cumulative and nonparticipating preferred stock, and 49,000 shares of $10 par value common stock. It then completed these transactions.

 

Jan. 11 Issued 21,800 shares of common stock at $17 per share.

Feb. 1 Issued to Sanchez Corp. 4,400 shares of preferred stock for the following assets: equipment with a fair value of $48,000; a factory building with a fair value of $147,000; and land with an appraised value of $254,000.

July 29 Purchased 1,800 shares of common stock at $18 per share. (Use cost method.)

Aug. 10 Sold the 1,800 treasury shares at $15 per share.

Dec. 31 Declared a $0.45 per share cash dividend on the common stock and declared the preferred dividend.

Dec. 31 Closed the Income Summary account. There was a $188,300 net income.

 

 

 

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(a)

 

 

   

Record the journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. $5,275.)

 

Date Account Titles and Explanation Debit Credit

 

Jan. 11

 

Cash

 

370,600

 

Common Stock

 

218,000

 

Paid-in Capital in Excess of Par - Common Stock

 

152,600

Feb. 1

 

Equipment

 

48,000

 

Buildings

 

147,000

 

Land

 

254,000

 

Preferred Stock

 

440,000

 

Paid-in Capital in Excess of Par - Preferred Stock

 

9,000

 

July 29

Treasury Stock

 

32,400

 

Cash

 

32,400

Aug. 10

Cash

27,000

 

Retained Earnings

 

5,400

 

Treasury Stock

 

32,400

 

Dec. 31

 

Retained Earnings

 

49410

 

Dividends Payable

 

49410

 

Dec. 31

 

Income Summary

 

188,300

 

Retained Earnings

 

188,300

 

 

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(b)

Prepare the stockholders' equity section of Shamrock Corporation's balance sheet as of December 31, 2020. (Enter account name only and do not provide descriptive information.)

 

SHAMROCK CORPORATION

Stockholders' Equity

choose the accounting period

 

select an opening name for subsection one

 

enter a balance sheet item

$enter a dollar amount

enter a balance sheet item

enter a dollar amount

select a closing name for subsection one

   

enter a total amount for subsection one

select an opening name for subsection two

 

enter a balance sheet item

$enter a dollar amount

enter a balance sheet item

enter a dollar amount

enter a subtotal of the two previous amounts

select a summarizing line for the first part

   

enter a total amount for the first part

enter a balance sheet item

enter a dollar amount

select a closing section name

   

$enter a total amount for this section