P 13 - 3A P 13 - 3B 3A ----The stockholders\' equity accounts of Neer Corporatio
ID: 2433679 • Letter: P
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P 13 - 3A P 13 - 3B 3A ----The stockholders' equity accounts of Neer Corporationon Jan. 1, 2010 were as follow: Preferred stock (8%, $50 par, cumulative, 10,000 sharesauthorized) $400,000 Common Stock ($1 stated value, 2,000,000 sharesauthorized) 1,000,000 Paid in capital in excess of par value - preferredstock 100,000 Paid in capital in excess of stated value - commonstock 1,450,000 Retainedearnings 1,816,000 treasury stock - common (10,000shares) 50,000 During 2010, the corporation had the ff transactions andevents petaining to itsl stockholders' equity Feb 1. Issued 25,000 shares of common stock for$120,000 Apr 14 Sold 6,000 shares of treasury stock - common for$33,000 Sept 3 Issued 5,000 shares of common stock for a patent valuedat $35,000 Nov. 10 Purchased 1,000 shares of common stock for thetreasury at a cost of $6,000 Dec 31 Determined that net income for the year was$452,000 No dividend were declared during the year a. journalize the transactions and the closing entry for netincome b. Enter the beginning balances in the accounts, and post thejournal entries to the stockholders equity accounts (use J5 for theposting reference) c. Prepare a stockholders' equity section at Dec. 31,2010 including the disclosure of the preferred dividends inarrears. P 13 - 3A P 13 - 3B 3A ----The stockholders' equity accounts of Neer Corporationon Jan. 1, 2010 were as follow: Preferred stock (8%, $50 par, cumulative, 10,000 sharesauthorized) $400,000 Common Stock ($1 stated value, 2,000,000 sharesauthorized) 1,000,000 Paid in capital in excess of par value - preferredstock 100,000 Paid in capital in excess of stated value - commonstock 1,450,000 Retainedearnings 1,816,000 treasury stock - common (10,000shares) 50,000 During 2010, the corporation had the ff transactions andevents petaining to itsl stockholders' equity Feb 1. Issued 25,000 shares of common stock for$120,000 Apr 14 Sold 6,000 shares of treasury stock - common for$33,000 Sept 3 Issued 5,000 shares of common stock for a patent valuedat $35,000 Nov. 10 Purchased 1,000 shares of common stock for thetreasury at a cost of $6,000 Dec 31 Determined that net income for the year was$452,000 No dividend were declared during the year a. journalize the transactions and the closing entry for netincome b. Enter the beginning balances in the accounts, and post thejournal entries to the stockholders equity accounts (use J5 for theposting reference) c. Prepare a stockholders' equity section at Dec. 31,2010 including the disclosure of the preferred dividends inarrears. 3A ----The stockholders' equity accounts of Neer Corporationon Jan. 1, 2010 were as follow: Preferred stock (8%, $50 par, cumulative, 10,000 sharesauthorized) $400,000 Common Stock ($1 stated value, 2,000,000 sharesauthorized) 1,000,000 Paid in capital in excess of par value - preferredstock 100,000 Paid in capital in excess of stated value - commonstock 1,450,000 Retainedearnings 1,816,000 treasury stock - common (10,000shares) 50,000 During 2010, the corporation had the ff transactions andevents petaining to itsl stockholders' equity Feb 1. Issued 25,000 shares of common stock for$120,000 Apr 14 Sold 6,000 shares of treasury stock - common for$33,000 Sept 3 Issued 5,000 shares of common stock for a patent valuedat $35,000 Nov. 10 Purchased 1,000 shares of common stock for thetreasury at a cost of $6,000 Dec 31 Determined that net income for the year was$452,000 No dividend were declared during the year a. journalize the transactions and the closing entry for netincome b. Enter the beginning balances in the accounts, and post thejournal entries to the stockholders equity accounts (use J5 for theposting reference) c. Prepare a stockholders' equity section at Dec. 31,2010 including the disclosure of the preferred dividends inarrears.Explanation / Answer
Feb.1 Cash $120,000 CommonStock $25,000 PaidIn Capital - CommonStock $95,000 Issued25,000 at premium $3.80 per share ________________________________________________________________ Apr14. Cash $33,000 TreassuryStock $30,000 PaidIn Capital - TreasuryStock $3,000 __________________________________________________________________ Sept.3 Patents $35,000 CommonStock $ 5,000 PaidInCapital $30,000 ____________________________________________________________________ Nov. 10 TreasuryStock $6,000 Cash $6,000 ____________________________________________________________________ Dec 31 IncomeSummary $452,000 RetainedEarnings $452,000 _____________________________________________________________________ I expect you can solve b and c yourself.Related Questions
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