Reference no: EM132600306
Question - Equity Transaction and Statement Preparation
On January 5,2009, NILE Corporation received a charter granting the right to issue 5,000 shares of $100 par value. 8% cumulative and nonparticipating preferred stock, and 50,000 shares of $5 par value common stock. It then completed these transactions.
Jan. 11 Issued 20,000 shares of common stock at $16 per share.
Feb. 1 Issued to Robb Nen Corp. 4,000 share of preferred stock for the following assets:
Machinery with a fair market value of $50,000; a factory building with a fair market value of $110,000; and land with an appraised value of $270,000.
July 29 purchased 1,800 shares of common stock at $19 per share (use cost method.)
Aug. 10 sold the 1,800 treasury shares at $14 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 $175,700 net income.
a. Record the journal entries for the transactions listed above.
b. Prepare the stockholders' equity section of NILE Corporation's balance sheet as of December 31, 2003.