Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the stockholders' equity accounts of castle corpor

The stockholders' equity accounts of Castle Corporation on January 1, 2017, were as follows. Preferred...

70.2K

Verified Solution

Question

Accounting

The stockholders' equity accounts of Castle Corporation on January 1, 2017, 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 ParPreferred Stock . 100,000

Paid-in Capital in Excess of Stated ValueCommon Stock . 1,450,000

Retained Earnings ... 1,816,000

Treasury Stock (10,000 common shares) ... 50,000

During 2015, the corporation had the following transactions 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 stockcommon for $33,000.

Sept. 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, 2017.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

2 A solar cell is coated with a transparent thin film of refractive index 1...

Physics
Q

An airplane must achieve a speed of 200 0 km h before it gets to...

Physics
Q

Min Compare the image above to the image below showing a fully contracted sarcomere hen...

Basic Math
Q

What is the annual growth rate of P t 50 1 62 t where t...

Calculus
Q

Find the probability of exactly three successes in eight trials of a binomial experiment in...

Algebra
Q

Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended...

Accounting
Q

Determining Amounts in Operating Lease-Lessee Kulver's Inc. leases equipment from Equip Inc. on...

Accounting
Q

The Millennium Square Inns total room revenue is generated by its suite and standard rooms....

Accounting
Q

ABC Corporation has 2,000 shares, 10% preferred stock of $50 par, and 6,000 shares of...

Accounting
Q

The current estimate of uncollectible accounts is 4% of Accounts Receivable. Accounts Receivable has...

Accounting
Q

For question "Youre prepared to make monthly payments of $260, beginning at the end of...

Finance
Q

Javier recently graduated and started his career with DNL Incorporated DNL provides a defined benefit...

Accounting