Seminoles Investment Company
On January 2, 20X1, Seminoles Investment Company began business by issuing 25,000 shares at $4 at par
value for $500,000 cash. The cash was invested, and on December 26, 20X1 all investments were sold for $541,000 cash. Operating expenses for 20X1 were $16,000 all paid in cash. Therefore, net income for 20X1 was on January 30, 20X2, the company bought and retired 6,000 of its own shares on the open market $15.00 each.
1.Prepare journal entries for issuance of shares, declaration and payment of cash dividends, and retirement of shares.
2. Create a balance sheet as of December 31, 20X1DateTransactionDebitCreditBalance Sheet02-Jan-21 Cash500,000Asset2021Equity2021Common Stock 25,000 at par $4100,000Cash525,000 Common Stock100,000APIC400,000APIC400,00002-Jan-21…