Chat with AI
Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 27
Issuing stock and preparing the stockholders' equity section of the balance sheet
Lurvey-Priest, Inc., was organized in 2011. At December 31, 2011, the Lurvey-Priest balance sheet reported the following stockholders' equity:
Requirements
1. During 2012, the company completed the following selected transactions. Journalize each transaction. Explanations are not required.
a. Issued for cash 1,500 shares of preferred stock at par value.
b. Issued for cash 2,000 shares of common stock at a price of $7 per share.
c. Net income for the year was $78,000, and the company declared no dividends. Make the closing entry for net income.
2. Prepare the stockholders' equity section of the Lurvey-Priest balance sheet at December 31, 2012.
Lurvey-Priest, Inc., was organized in 2011. At December 31, 2011, the Lurvey-Priest balance sheet reported the following stockholders' equity:
Requirements
1. During 2012, the company completed the following selected transactions. Journalize each transaction. Explanations are not required.
a. Issued for cash 1,500 shares of preferred stock at par value.
b. Issued for cash 2,000 shares of common stock at a price of $7 per share.
c. Net income for the year was $78,000, and the company declared no dividends. Make the closing entry for net income.
2. Prepare the stockholders' equity section of the Lurvey-Priest balance sheet at December 31, 2012.
Explanation
Verified
Verified
2.
Step 1. Read the exercise....
Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
