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Accounting 131 – Homework Handout – Corporations Name ________________________

Stockholder Equity Transactions

Record the following transactions in general journal form.

Feb. 1

Issued for cash 2,000 shares of Preferred Stock at $50 per share, par value.

Date

Account Titles

Debit

Credit

Feb. 1

Feb. 6

Issued for cash 50,000 shares of $10 par value Common Stock at $12 per share.

Date
Account Titles
Debit
Credit
Feb. 6

Feb. 15

Issued 2,000 shares of $10 par value Common Stock in exchange for $28,000 cash.

Date
Account Titles
Debit
Credit
Feb. 15

Stockholder’s Equity Section

Using the following information;

a. Determine the Retained Earnings balance at 12/31/2009.

Dividends for the year were $30,000 and the corporation’s net income was $172,000 for the year.

b. Determine the Total Stockholder’s Equity amount reported on the Balance Sheet, 12/31/2009, from the information provided below.

Additional Paid-in capital $148,000

Preferred stock, 12%, $100 par value 800,000

Common Stock, $5 stated value 450,000

Retained earnings, 1/1/2009 481,800

Investments – short term 50,000

Organizational costs 1,500

Treasury Stock – common (600 shares) 3,600

Accounts receivable 125,000

Mortgages payable 75,000

Dividends payable 15,000

Dividends 30,000

a. _______________________________ b. ________________________________