70.2K

Verified Solution

Link Copied!

Current Attempt in Progress

Transactions of Pharoah Corporation are as follows:

The company is granted a charter that authorizes the issuance of $150,000$ preferred shares and an unlimited number of

common shares.

The founders of the corporation are issued $9,000$ common shares for land valued by the board of directors at $$234,000$

$($based on an independent valuation$).$

Sold $16,000$ preferred shares for cash at $$100$ per share.

Repurchased and cancelled $3,200$ outstanding preferred shares for cash at $$90$ per share.

Paid $$83,000$ in dividends that were declared in the previous period.

Repurchased for cash and cancelled $400$ of the outstanding common shares issued in item $2$ above at $$49$ per share.

Issued $2,700$ preferred shares at $$99$ per share.

Prepare entries in journal form to record the transactions listed above. No other transactions affecting the capital share accounts

have occurred. $($List all debit entries before credit entries. Credit account titles are automatically indented when the 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.$)$

No$.$ Account Titles and Explanation

eTextbook and Media

List of Accounts

Assuming that the company has retained earnings from operations of $$1,132,000,$ prepare the shareholders' equity section of its

SFP after considering all the transactions above.

PHAROAHCORPORATION

Statement of Financial Position $($Partial$)$

$$ :

$

eTextbook and Media

List of Accounts

Answer & Explanation Solved by verified expert

See Answer