Earned net income of 56000 and declared and paid cash

Reference no: EM13566872

Networking Solutions Inc. began operations on January 1, 2011, and immediately issued its shares, receiving cash. A-1's balance sheet at December 31, 2011, reported the following shareholders' equity:

Common shares ................................................................................ $249,500

Contributed surplus.......................................................................... 800

Retained earnings.............................................................................. 38,000

Total shareholders' equity ................................................................. $288,300

During 2011, A-1

a. Issued 50,000 common shares for $5 per share

b. Repurchased 800 of its own common shares for cancellation, paying $4 per share

c. Issued common shares for $7 each

d. Earned net income of $56,000 and declared and paid cash dividends. Revenues were $171,000 and expenses totalled $115,000.

Required

Journalize all A-1's shareholders' equity transactions during the year. A-1's entry in part (d) to close net income to Retained Earnings was:

Revenues 171,000

Expenses 115,000

Retained Earnings 56,000

Reference no: EM13566872

Questions Cloud

A sales forecast supplied by the marketing department : facts the observer company is a small rapidly growing wholesaler of consumer electronic products including small

Assume that you need 1000000 to work with and you approach : assume that you need 1000000 to work with and you approach a bank for a loan. the loan is a discount loan discount rate

Review the story of job in the bible focusing on his : perform a literature search on the grieving process using readings from this module the gcu library or other websites

Prepare a document outlining the business case for a : prepare a document outlining the business case for a particular development within electrical and electronic degree.

Earned net income of 56000 and declared and paid cash : networking solutions inc. began operations on january 1 2011 and immediately issued its shares receiving cash. a-1s

In his spare time esteban also prepares tax returns and : esteban appleby certified public accountant is an assistant to the controller of summerfield consulting co. in his

Discuss the relationship that relative inflation rates : discuss the relationship that relative inflation rates between countries have on the specific exchange rates between

Analyze and evaluate the ergonomics and human factors : analyze and evaluate the ergonomics and human factors design principles with regards to aircraft and then creatively

Given the information for schism inc in problems 11 and 12 : given the information for schism inc. in problems 11 and 12 suppose you also know that the firms net capital spending

User Account

All Pages