Journalize stock entries-make stockholder equity section

Assignment Help Accounting Basics

Reference no: EM1357190

Milner Corporation has been authorized to issue 20,000 shares of $100 par value, 10% noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2007, the ledger contained the following balances pertaining to stockholders' equity.

Preferred Stock $130,000
Paid-In Capital in Excess of Par Value- Preferred Stock 20,000
Common Stock 2,000,000
Paid-In Capital in Excess of Stated Value- Common Stock 1,850,000
Treasury Stock- Common (5,000 shares) 55,000
Retained Earnings 82,000

The preferred stock was issued for $150,000 cash. All common stock was issued for cash. In November 5,000 shares of common stock were purchased for the treasury at a per share cost of $11. No dividends were declared in 2007.

Instructions:

Prepare the journal entries for the following.

Issuance of preferred stock for cash

Issuance of common stock for cash

Issuance of common treasury stock for cash.

Prepare the stockholder's equity section of the balance sheet at December 31, 2007
Total Stockholder's equity $4,027,000

Reference no: EM1357190

Questions Cloud

Estimate the amount of mass the sun has lost as a result : A curve of radius 152 m is banked at an angle of 11°. An 722-kg car negotiates the curve at 86 km/h without skidding. avoid the effects of air drag and rolling friction.

Create a business analysis : Suppose your parents have been left a substantial amount of money and want to invest in a corporation. Your father trusts you to make a recommendation but also wants to see the reasoning behind your choice.

Show what the progressive approach to discipline : Progressive approach to discipline - Show what the Progressive Approach to discipline, the Positive Approach to discipline, and the GAP approach are all about.

Psychological methods in dealing with pain-chronic illness : Explain how psychological theory can be applied to pain management. How effective are psychological techniques in dealing with pain and chronic illnesses?

Journalize stock entries-make stockholder equity section : Milner Corporation has been authorized to issue 20,000 shares of $100 par value, 10% noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. Prepare the journal ent..

Sample questions for a buyer to ask seller : Sample questions for a buyer to ask seller about water line pipes - need to verify the manufacturing process for the pipes?

Explain is training always an effective solution : Explain Is training always an effective solution and Why or why not also What evidence supports the main point?

Find the gradient magnitude and gradient direction : Consider the sub-image shown above. Find the gradient magnitude and gradient direction at the center entry using the following operators.

Illustrate what weakness does this measure have : Illustrate what are the arguments for using real per capita GNI to compare living standards between countries. What weakness does this measure have.

User Account

All Pages