Reference no: EM132993203
On January 5, 2020, Bonita Corporation received a charter granting the right to issue 4,500 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 45,400 shares of $10 par value common stock.
It then completed these transactions.
Jan. 11 Issued 19,700 shares of common stock at $16 per share.
Feb. 1 Issued to Sanchez Corp. 4,400 shares of preferred stock for the following assets: equipment with a fair value of $45,300; a factory building with a fair value of $176,000; and land with an appraised value of $290,000.
July 29 Purchased 1,700 shares of common stock at $17 per share. (Use cost method.)
Aug. 10 Sold the 1,700 treasury shares at $15 per share.
Dec. 31 Declared a $0.25 per share cash dividend on the common stock and declared the preferred dividend.
Dec. 31 Closed the Income Summary account. There was a $184,700 net income.
Problem 1: Record the journal entries for the transactions listed above.
Problem 2: Prepare the stockholders' equity section of Bonita Corporation's balance sheet as of December 31, 2020.