On january 1, 2015 BYD Corporation was incorporated. The corporate charter grant
ID: 2422469 • Letter: O
Question
On january 1, 2015 BYD Corporation was incorporated. The corporate charter grants BYD Corp. the right to issue 100,000 shares of $25.00 par value, 5% cumulative and nonparticipating preferred stock, and 2,000,000 shares of $1.00 par value common stock. it then completed these transactions
- Jan 25 issued 1,600,000 shares of common stock at $25 per share
-Mar 1 issued tp samcjez corp. 65,000 shares of preferreed stock for the following
1. Machinery with a fair market value of $650,000
2. A factory building with a fair market value of $812,500
3. and, land with an appraised value of $975,000
- Jul 21 Purchased 192,00 shares of common stock at $18.75 per share. (use the cost method)
-Aug 15 Sold the 144,000 treasury shares at $30.00 per share
-Dec 31 Closed the income summary account. There was $33,950,000 net income
-Dec 31 Declared $1.20 per share cash dividend on the common stock and declared the preferred dividend.
A) Record the Journal entries for the transactions listed above
B) Prepare the Stockholders' Equity section of the BYD Corporation's balance sheet as of Dec. 31, 2015
Explanation / Answer
A
B;
Stockholders' Equity:
Transaction date Account Title Debit Credit $ $ January 25 Cash 40,000,000 Common stock 1,600,000 Paid-in capital in excess of par value 38,400,000 March 1 Machinery 650,000 Building 812,500 Land 975,000 5% Preferred stock 1,625,000 Paid-in capital in excess of par value 812,500 July 21 Treasury stock 3,600,000 Cash 3,600,000 August 15 Cash 4,320,000 Treasury stock 2,700,000 Additional paid-in capital, treasury stock 1,620,000 December 31 Income Summary 33,950,000 Retained earnings 33,950,000 December 31 Retained earnings 2,001,250 Common stock dividend payable 1,920,000 Preferred stock dividend payable 81,250Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.