Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 33

Early in the year Bill Sharnes and several friends organized a corporation called Sharnes Communications, Inc.he corporation was authorized to issue 50,000 shares of $100 par value, 10 percent cumulative preferred stock and 400,000 shares of $2 par value common stock.he following transactions (among others) occurred during the year:

Instructions
a.repare journal entries in general journal form to record the above transactions.nclude entries at December 31 to close the Income Summary account and the Dividends account.
b.repare the stockholders' equity section of the Sharnes Communications, Inc., balance sheet at December 31.