Prepare the stockholders equity section of elizabeth

Reference no: EM13589702

On Januray 5, 2014, Elizabeth Company received a charter granting the right to issue 100,000 shares of $10 par value common stock and 20,000 shares of $50 par value, 8% stock. It then completed these transactions:

January, 11: Issued 50,000 shares of common stock and 5,000 shares of preferred stock for a lump sum of $1,500,000. After the issuance, the common stock is traded at $25 per share and the preferred stock at $62.50 per share.

July, 29: Purchased back 5,000 shares of common stock at $25 per share. (Use the cost method).

August, 10: Reissued 2,000 treasury shares at $30 per share.

October, 1: 2-for-1 stock split for common stock value reduced to $5.

Novermber, 1: Delcared a 5% stock dividend on outstanding common stock when the stock was selling for $20 per share.

December, 15: Stock dividend issued.

December, 30: Declared preferred dividend and a $0.50 per share cash dividend on the common stock.

December, 31: Net income in 2014 was $550,000 (close Income Summary to Retained Earnings).

Required:

Part: (1) Prepare Journal Entries to record the transactions listed above.

Part: (2) Prepare the stockholders' equity section of Elizabeth Company's balance sheet as of December 31, 2014.

Reference no: EM13589702

Questions Cloud

The cash account for fit bike co at august 1 2014 indicated : the cash account for fit bike co. at august 1 2014 indicated a balance of 12190. during august the total cash deposited

The company would like to initiate an intensive advertising : marple associates is a consulting firm that specializes in information systems for construction and landscaping

New office furniture costing 500 was purchased on the last : makingithappen.com is an internet wholesaler of a variety of commercial software applications. on january 1 2007 the

Thalliums melting point is 304 c and its boiling point is : question the heat of fusion for thallium is 21 jg and its heat of vaporization is 795 jg. thalliums melting point is

Prepare the stockholders equity section of elizabeth : on januray 5 2014 elizabeth company received a charter granting the right to issue 100000 shares of 10 par value common

Calculate the conentrations of the ions and the molar : question a liter of solution saturated at 25degrees c. with calcium oxalate cac2o4 is evaporated to dryness giving a

Record the depreciation expense for the three used machines : prepare the journal entry to record depreciation expense at the end of year 1 assuming the following. if no entry is

James co has two producing departments each producing : james co has two producing departments. each producing department is held responsible for a share of the costs of the

Wexler company expects sales of 40000 in july 50000 in : wexler company expects sales of 40000 in july 50000 in august and 30000 in september. wexlers experience is that 40

User Account

All Pages