Prepare the stockholders' equity section from transaction data
Shown below is the stockholders' equity section of Jones' balance sheet at December 31,2018. In 2018,the following events occurred:
Jones issued 2,000 shares of $5 par value common stock in exchange for legal services relating to the formation of the corporation;value of these services was set at $19,500.
Jones issued 8,000 of its 10,000 authorized shares of $8 cumulative preferred stock,$100 par value,for $108 per share.
The board of directors declared and paid dividends of $8 per share to preferred stockholders and 50 cents per share to common stockholders.
The company's net income for 2018 is $450,000.
Instructions: Complete in good form the stockholders' equity section of a balance sheet prepared for Jones at December 31,2018.

Question

Prepare the stockholders' equity section from transaction data
Shown below is the stockholders' equity section of Jones' balance sheet at December 31,2018.  In 2018,the following events occurred:
Jones issued 2,000 shares of $5 par value common stock in exchange for legal services relating to the formation of the corporation;value of these services was set at $19,500.
Jones issued 8,000 of its 10,000 authorized shares of $8 cumulative preferred stock,$100 par value,for $108 per share.
The board of directors declared and paid dividends of $8 per share to preferred stockholders and 50 cents per share to common stockholders.
The company's net income for 2018 is $450,000.
Instructions: Complete in good form the stockholders' equity section of a balance sheet prepared for Jones at December 31,2018.

Quizplus · Accepted Answer

The Answer of Prepare the stockholders' equity section from transaction data
Shown below is the stockholders' equity section of Jones' balance sheet at December 31,2018.  In 2018,the following events occurred:
Jones issued 2,000 shares of $5 par value common stock in exchange for legal services relating to the formation of the corporation;value of these services was set at $19,500.
Jones issued 8,000 of its 10,000 authorized shares of $8 cumulative preferred stock,$100 par value,for $108 per share.
The board of directors declared and paid dividends of $8 per share to preferred stockholders and 50 cents per share to common stockholders.
The company's net income for 2018 is $450,000.
Instructions: Complete in good form the stockholders' equity section of a balance sheet prepared for Jones at December 31,2018.

Prepare the Stockholders' Equity Section from Transaction Data