Prepare the stockholders' equity section from transaction data.
Shown below is the stockholders' equity section of Farrell Corporation's balance sheet at December 31,2017:
In 2018,the following events occurred:
Farrell Corporation issued 1,000 shares of $3 par common stock in exchange for land.Although several real estate appraisers disagree on the value of the land,Farrell 's stock is currently selling on a stock exchange for $32 per share.
Farrell Corporation issued 3,000 shares of 5% cumulative preferred stock,$100 par value,for $108 per share.
The board of directors declared a dividend of $1 per share on the common stock.
Farrell's net income for 2018 is $375,000.
Instructions: Complete in good form the stockholders' equity section of a balance sheet prepared for Farrell Corporation at December 31,2018:

Question

Prepare the stockholders' equity section from transaction data.
Shown below is the stockholders' equity section of Farrell Corporation's balance sheet at December 31,2017:
  In 2018,the following events occurred:
Farrell Corporation issued 1,000 shares of $3 par common stock in exchange for land.Although several real estate appraisers disagree on the value of the land,Farrell 's stock is currently selling on a stock exchange for $32 per share.
Farrell Corporation issued 3,000 shares of 5% cumulative preferred stock,$100 par value,for $108 per share.
The board of directors declared a dividend of $1 per share on the common stock.
Farrell's net income for 2018 is $375,000.
Instructions: Complete in good form the stockholders' equity section of a balance sheet prepared for Farrell Corporation 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 Farrell Corporation's balance sheet at December 31,2017:
  In 2018,the following events occurred:
Farrell Corporation issued 1,000 shares of $3 par common stock in exchange for land.Although several real estate appraisers disagree on the value of the land,Farrell 's stock is currently selling on a stock exchange for $32 per share.
Farrell Corporation issued 3,000 shares of 5% cumulative preferred stock,$100 par value,for $108 per share.
The board of directors declared a dividend of $1 per share on the common stock.
Farrell's net income for 2018 is $375,000.
Instructions: Complete in good form the stockholders' equity section of a balance sheet prepared for Farrell Corporation at December 31,2018:

Prepare the Stockholders' Equity Section from Transaction Data