Financial Accounting

May 21st, 2015
Anonymous
Category:
Accounting
Price: $35 USD

Question description

The stockholders’ equity accounts of Castel Corporation on January 1, 2015, were as follows:

Preferred Stock (8%, $50 par, cumulative, 10,000 shares authorized)  $400,000

Common Stock ($1 stated value, 2,000,000 shares authorized)

$1,000,000

Paid-in Capital in Excess of Par – Preferred Stock

$100,000

Paid-in Capital in Excess of Stated Value – Common Stock

$1,450,000

Retained Earnings

$1,816,000

Treasury Stock (10,000 common stock)

$50,000

During 2015, the corporation had the following transaction and events pertaining to its 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

Sep 3 Issued 5,000 shares of common stock for a patent valued at $35,000

Nov 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,000

Dec 31 Determined that net income for the year was $452,000

No dividends were declared during the year.

Instructions:

a)  Journalize the transactions and the closing entry for net income

b)  Enter the beginning balances in the accounts, and post the journal entries to the stockholders’ equity accounts (Use J5 for the posting reference)

c)  Prepare a stockholders’ equity section at December 31, 2015, including the disclosure of the preferred dividends in arrears.


Tutor Answer

(Top Tutor) RylanWirkkala
School: Cornell University
PREMIUM TUTOR

Studypool has helped 1,244,100 students

Review from student
Anonymous
" The best tutor out there!!!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors