January 1, 2017, the stockholders’ equity section of JayhawkCorporation’s balance sheetshowed the followingPreferred...January 1,...

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Accounting

January 1, 2017, the stockholders’ equity section of JayhawkCorporation’s balance sheet
showed the following
Preferred stock, $100 par value, 5%, 50,000 sharesauthorized,
5,000 shares issued and outstanding
$500,000
Paid in capital in excess of par, Preferred Stock
100,000
Common stock, $3 par value, 500,000 shares authorized,
20,000 shares issued and outstanding
60,000
Paid in capital in excess of par, Common Stock
250,000
Total contributed Capital
910,000
Retained Earnings
320,000
Total Stockholders' Equity
$1,230,000
During the year, 2017, the following transactions occurred:
February 2
Issued 600 shares of common stock for $16 per share.
April 15
Issued 1,000 shares of preferred stock for $125 per share.
September 15 Declared dividends of $60,000 to be paid on October31, 2017.
October 31
Paid the dividends declared on September 15.
Required (10 points):
a. Prepare journal entries to record the above transactions.
b. Assuming that net income was $93,000, prepare thestockholders’ equity section of the
balance sheet at December 31, 2017.

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1 Date Account title Debit credit Feb 2 cash 60016 9600 common stock 6003 1800 Paid in capital in excess of par Common Stock 7800 April 15 cash 1000125 125000 preferred stock 1000100 100000 Paid in See Answer

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In: AccountingJanuary 1, 2017, the stockholders’ equity section of JayhawkCorporation’s balance sheetshowed the followingPreferred...January 1, 2017, the stockholders’ equity section of JayhawkCorporation’s balance sheetshowed the followingPreferred stock, $100 par value, 5%, 50,000 sharesauthorized,5,000 shares issued and outstanding$500,000Paid in capital in excess of par, Preferred Stock100,000Common stock, $3 par value, 500,000 shares authorized,20,000 shares issued and outstanding60,000Paid in capital in excess of par, Common Stock250,000Total contributed Capital910,000Retained Earnings320,000Total Stockholders' Equity$1,230,000During the year, 2017, the following transactions occurred:February 2Issued 600 shares of common stock for $16 per share.April 15Issued 1,000 shares of preferred stock for $125 per share.September 15 Declared dividends of $60,000 to be paid on October31, 2017.October 31Paid the dividends declared on September 15.Required (10 points):a. Prepare journal entries to record the above transactions.b. Assuming that net income was $93,000, prepare thestockholders’ equity section of thebalance sheet at December 31, 2017.