The charter of the BRHC Corporation authorizes the issuance of 3,000,000 shares of no-par common stock and 1,000,000 shares of 10%,$100 par cumulative preferred stock.Events affecting the stockholders' equity section during the first year of operations (2010)are listed below.
(1.)300,000 shares of common stock were issued for $20 per share.
(2.)25,000 shares of preferred stock were sold at $102 per share.
(3.)A building with a fair market value of $820,000 was acquired for a cash payment of $300,000 and 26,000 shares of common stock.
(4.)30,000 shares of common stock were issued for $690,000 in cash.
(5.)Dividends for the preferred stock were declared and common stock dividend was declared for $1 per share.
Required:
(A.)Record the transaction described above.
(B.)Prepare the stockholders' equity section of BRHC assuming that the corporation generated $1,200,000 of income in the first year.

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The Answer of The charter of the BRHC Corporation authorizes the issuance of 3,000,000 shares of no-par common stock and 1,000,000 shares of 10%,$100 par cumulative preferred stock.Events affecting the stockholders' equity section during the first year of operations (2010)are listed below.
(1.)300,000 shares of common stock were issued for $20 per share.
(2.)25,000 shares of preferred stock were sold at $102 per share.
(3.)A building with a fair market value of $820,000 was acquired for a cash payment of $300,000 and 26,000 shares of common stock.
(4.)30,000 shares of common stock were issued for $690,000 in cash.
(5.)Dividends for the preferred stock were declared and common stock dividend was declared for $1 per share.
Required:
(A.)Record the transaction described above.
(B.)Prepare the stockholders' equity section of BRHC assuming that the corporation generated $1,200,000 of income in the first year.

The Charter of the BRHC Corporation Authorizes the Issuance of 3,000,000