.The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Prepare the journal entries with narrations to record the following: • The issuances of stock. • Close out net income to retained earnings. • Dividend declared. • Close out dividend to retained earnings . Issued _50% ___shares of class A common stock. Stock has par value of _$ 45.00__ per share and was issued at $_75_ per share. Issued _50% shares of no-par class B stock .(issue price $ 70.00) Issued 25%___ shares of preferred stock at par value. ( Par value $ 145.00) Exchanged 40% of authorised shares of class A common stock for Office Furniture and Equipment with an appraised value of $_$ 4,000,000.00_ and Motor Truck with an appraised value of $ 10,000,000.00_. Earned Net income $$ 1,400,000.00____.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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4.The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Prepare the journal entries with narrations to record the following: • The issuances of stock. • Close out net income to retained earnings. • Dividend declared. • Close out dividend to retained earnings

. Issued _50% ___shares of class A common stock. Stock has par value of _$ 45.00__ per share and was issued at $_75___ per share.

Issued ___50%__ shares of no-par class B stock .(issue price $ 70.00)

Issued __25%_____ shares of preferred stock at par value. ( Par value $ 145.00)
Exchanged __40% of authorised shares of class A common stock for Office Furniture and Equipment with an appraised value of $___$ 4,000,000.00___ and Motor Truck with an appraised value of $ 10,000,000.00___.

Earned Net income $__$ 1,400,000.00____.

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