Accounting 2

P12-30A

P12-30A

, was organized in 201

At

, the Lincoln-

December 31, 2011
1.

ize each transaction. Explanations are not required.

Issued for cash 1,300 shares of preferred stock at par value.

Issued for cash 2,400 shares of common stock at a price of $5 per share.

P12-30A
Journal
a.
b.
c.
LINCOLN-PRIEST, INC.
Stockholders’ Equity
Paid-in capital in excess of par – common

Total paid-in capital 41,000
Retained earnings

Accounting, 9e

Issuing stock and preparing the stockholders’ equity section of the balance sheet

LO 3 [15-20 minutes]

Students please fill-in areas that are shaded

Student Name

Course Name

Student ID:

Date:

Lincoln-Priest, In

c.

1.

December 31, 2011

Priest balance sheet reported the following stockholders’ equity:

LINCOLN-PRIEST, INC.

Stockholders’ Equity

Paid-in Capital:

Preferred stock, 7%, $40 par, 110,000 shares authorized, none issued

$0

Common stock, $1 par, 520,000 shares authorized, 61,000 shares issued

and outstanding

$61,000

Paid-in capital in excess of par – common

41000

Total paid-in capital

$102,000

Retained earnings

29000

Total stockholders’ equity

$131,000

Requirements

During 2012, the company completed the following selected transactions.

Journal

a.

b.

c. Net income for the year was $74,000, and the company declared no dividends.

Make the closing entry for net income.

2.

Prepare the stockholders’ equity section of the Lincoln-Priest balance sheet at

December 31, 2012.

Test Your Knowledge

Req. 1

DATE

ACCOUNTS AND EXPLANATIONS

DEBIT

CREDIT

Req. 2

Paid-in capital:

41,000

Total stockholder’s equity

$ 41,000

*61,000 + 2,400 = 63,400 shares

Print Test Your Knowledge