AC116 Unit 7 Lab AssignmentQuestion 12 of 13
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The stockholders’ equity accounts of Blue Spruce Corporation on January 1, 2022, were as follows.
Preferred Stock (8%, $52 par, 10,500 shares authorized)
$ 442,000
Common Stock ($1 stated value, 2,000,000 shares authorized)
1,350,000
Paid-in Capital in Excess of Par—Preferred Stock
100,000
Paid-in Capital in Excess of Stated Value—Common Stock
1,450,000
Retained Earnings
1,850,000
Treasury Stock (10,000 common shares)
50,000
During 2022, the corporation had the following transactions and events pertaining to its stockholders’ equity.
Feb.
1
Issued 25,000 shares of common stock for $124,000.
Apr.
14
Sold 5,900 shares of treasury stock—common for $32,000.
Sept.
3
Issued 4,700 shares of common stock for a patent valued at $34,300.
Nov.
10
Purchased 1,000 shares of common stock for the treasury at a cost of $5,800.
Dec.
31
Determined that net income for the year was $435,000.
No dividends were declared during the year.
(a)
Your answer is partially correct.
Journalize the transactions and the closing entry for net income. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
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Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Allowance for Doubtful Accounts
Bad Debts Expense
Cash
Common Stock
Depreciation Expense
Equipment
Gain on Sale of Stock
Assistance Used
Income
AC116
Unit Summary
7 Lab Assignment
Income Tax Expense
Question 12 of 13
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Income Tax Payable
Insurance Expense
Interest Expense
Interest Payable
Inventory
Land
Loss on Disposal of Plant Assets
No Entry
Notes Payable
Organization Expense
Paid-in Capital from Treasury Stock
Paid-in Capital in Excess of Par-Common Stock
Paid-in Capital in Excess of Par-Preferred Stock
Paid-in Capital in Excess of Stated Value-Common Stock
Patents
Preferred Stock
Prepaid Expenses
Prepaid Insurance
Retained Earnings
Salaries and Wages Expense
Salaries and Wages Payable
Service Revenue
Share Capital-Ordinary
Share Capital-Preference
Share Premium-Ordinary
Share Premium-Preference
Supplies
Supplies Expense
Treasury Stock
Unearned Service Revenue
Utilities Expense
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(b)
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.)
Preferred Stock
Date
Explanation Ref.
Balance
Debit
Credit
Balance
√
Common Stock
Date
Explanation Ref.
Balance
Debit
Credit
Balance
Credit
Balance
Debit
Credit
Balance
Debit
Credit
Balance
√
J5
J5
Paid-in Capital in Excess of Par—Preferred Stock
Date
Explanation Ref.
Balance
Debit
√
Paid-in Capital in Excess of Stated Value—Common Stock
Date
Explanation Ref.
Balance
√
J5
J5
Paid-in Capital from Treasury Stock
Date
Explanation Ref.
– Jan 1
– Feb 1
– April 14
– Sep 3
– Nov 10
– Dec 31
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AC116 Unit 7 Lab Assignment
J5
Retained Earnings
Question 12 of 13
Date
Explanation Ref.
Balance
Debit
Credit
Balance
Debit
Credit
Balance
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√
J5
Treasury Stock
Date
Explanation Ref.
Balance
√
J5
J5
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(c)
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.)
BLUE SPRUCE CORPORATION
Balance Sheet (Partial)
$
$
$
:
$
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AC116 Unit 7 Lab Assignment
Question 13 of 13
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Concord Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stock and 997,100 shares of no-par common stock. The corporation assigned a $2.60 stated value to the common stock. At December 31, 2022, the ledger contained the following balances pertaining to stockholders’ equity.
Preferred Stock
$110,000
Paid-in Capital in Excess of Par—Preferred Stock
31,500
Common Stock
997,100
Paid-in Capital in Excess of Stated Value—Common Stock
Treasury Stock (960 common shares)
1,687,400
12,480
Paid-in Capital from Treasury Stock
1,440
Retained Earnings
83,500
The preferred stock was issued for land having a fair value of $141,500. All common stock issued was for cash. In November, 1,440 shares of common stock were purchased for the treasury at a per share cost of $13. In December, 480 shares of treasury stock were sold for $16 per share. No dividends were declared in 2022.
(a)
Prepare the journal entries for the: (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(1)
Issuance of preferred stock for land.
(2)
Issuance of common stock for cash.
(3)
Purchase of common treasury stock for cash.
(4)
Sale of treasury stock for cash.
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
4.
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(b)AC116 Unit 7 Lab Assignment
Prepare 13
the stockholders’
equity section at December 31, 2022. (Enter the account name only and do not provide the descriptive information provided in the question.)
Question
of 13
-/5
CONCORD CORPORATION
Balance Sheet (Partial)
$
$
:
$
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List of Accounts
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