Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 13-4a peck corporation is authorized to is

Problem 13-4A Peck Corporation is authorized to issue 22,000 shares of $50 par value, 10%...

60.1K

Verified Solution

Question

Accounting

Problem 13-4A

Peck Corporation is authorized to issue 22,000 shares of $50 par value, 10% preferred stock and 130,000 shares of $5 par value common stock. On January 1, 2017, the ledger contained the following stockholders equity balances.

Preferred Stock (12,000 shares) $600,000
Paid-in Capital in Excess of ParPreferred Stock 69,000
Common Stock (64,000 shares) 320,000
Paid-in Capital in Excess of ParCommon Stock 660,000
Retained Earnings 250,000

During 2017, the following transactions occurred.

Feb. 1 Issued 2,100 shares of preferred stock for land having a fair value of $125,000.
Mar. 1 Issued 1,100 shares of preferred stock for cash at $70 per share.
July 1 Issued 15,000 shares of common stock for cash at $8 per share.
Sept. 1 Issued 400 shares of preferred stock for a patent. The asking price of the patent was $29,500. Market price for the preferred stock was $70 and the fair value for the patent was indeterminable.
Dec. 1 Issued 8,250 shares of common stock for cash at $8.50 per share.
Dec. 31

Net income for the year was $260,000. No dividends were declared.

Journalize the transactions and the closing entry for net income

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students