50.1K

Verified Solution

Link Copied!

The stockholders' equity accounts of Culver Corporation on January 1, 2022, were as follows. Preferred Stock (8%, $50 par, 11,000 shares authorized) Common Stock ($1 stated value, 2,000,000 shares authorized) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (11,000 common shares) $ 400,000 1,200,000 135,000 1,500,000 1,850,000 55,000 During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 24,000 shares of common stock for $116,000. Apr. 14 Sold 6,000 shares of treasury stock-common for $32,900. Sept. 3 Issued 5,200 shares of common stock for a patent valued at $35,700. n ]|

The stockholders' equity accounts of Culver Corporation on January 1, 2022, were as follows. During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 24,000 shares of common stock for $116,000. Apr. 14 Sold 6,000 shares of treasury stock-common for $32,900. Sept. 3 Issued 5,200 shares of common stock for a patent valued at $35,700. Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $5,700. Dec. 31 Determined that net income for the year was $415,000. No dividends were declared during the year. Journalize the transactions and the closing entry for net income. (List all debit entries before credit entries. Record journol entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J5 for the posting reference.) (Post entries in the order of journal entries presented in the previous part.) Paid-in Capital in Excess of Par-Preferred Stock \begin{tabular}{|cccccc|} \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline & Balance & & \\ \hline \end{tabular} Paid-in Capital in Excess of Stated Value-Common Stock \begin{tabular}{|c|c|c|c|c|} \hline Paid-in Capital from Treasury Stock \\ \hline Date Explanation Ref. Debit & Credit & Balance \\ \hlinev & 15 & & \\ \hline \end{tabular} Retained Earnings Treasury Stock Prepare a stockholders' equity section at December 31, 2022. (Enter the account name only and do not provide the descriptive information provided in the question.) $ $

Answer & Explanation Solved by verified expert

See Answer