90.2K

Verified Solution

Link Copied!

Problem 15-01 (Part Level Submission) On January 5, 2020, Kingbird Corporation received a charter granting the right to issue 5,100 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 51,600 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Issued 19,500 shares of common stock at $15 per share. Feb. 1 Issued to Sanchez Corp. 4,100 shares of preferred stock for the following assets: equipment with a fair value of $53,300; a factory building with a fair value of $152,000; and land with an appraised value of $295,000. July 29 Purchased 1,600 shares of common stock at $16 per share. (Use cost method.) Aug. 10 Sold the 1,600 treasury shares at $14 per share. Dec. 31 Declared a $0.35 per share cash dividend on the common stock and declared the preferred dividend. Dec. 31 Closed the Income Summary account. There was a $158,400 net income. (a) Your answer is partially correct. Try again. Record the journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. $5,275.) Date Account Titles and Explanation Debit Credit Jan. 11 Cash 292,500 Common Stock 195,000 Paid-in Capital in Exces 2,500 Feb. 1 Equipment 53,300 Authorized To Buildings 152,000 Land 295,000 Preferred Stock 410 on JJJUU CES Buildings 152,000 Land 295,000 Preferred Stock 410,000 Paid-in Capital in Exces 90,300 July 29 Treasury Stock 25,600 Cash 25,600 Aug. 10 Cash 22,400 Retained Earnings 3,200 Treasury Stock 25,600 dy. Dec. 31 Retained Earnings 19,845 x Dividends Payable 19,845 Dec. 31 Income Summary 158,400 Retained Earnings 158,400

Answer & Explanation Solved by verified expert

See Answer