Equity transactions and statement preparation

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Reference no: EM13986373

(Equity Transactions and Statement Preparation)

On April 21, 2014, Alligator Corporation received a charter granting the right to issue 100,000 shares of $100 par value, 6% cumulative and nonparticipating preferred stock, and 1,000,000 shares of $1 par value common stock. It then Apr. 28 Issued 100,000 shares of common stock at $23 per share. Jul. 16 Issued 6,000 shares of preferred stock to Thevenot Corporation for the following assets: equipment with a fair value of $76,000; a warehouse with a fair value of $240,000; and land with an appraised value of $320,000. Aug 6 Purchased 750 shares of common stock at $26 per share. (Use cost method.) Sep. 17 Sold the 750 treasury shares at $27 per share. Dec. 31 Declared a $0.10 per share cash dividend on the common stock and declared the preferred dividend. Dec. 31 Closed the Income Summary account. There was a $96,900 net income.

Instructions

(a) Record the journal entries for the transactions listed above.

(b) Prepare the stockholders' equity section of Alligator Corporation's balance sheet as of December 31, 2014

Reference no: EM13986373

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