ment CALCULATOR PILL SCREEN PR Problem 15-1 (Part Level Submission) On January 5

Question

ment CALCULATOR PILL SCREEN PR Problem 15-1 (Part Level Submission) On January 5, 2017, Stellar Corporation received a charter granting the right to Issue 5,200 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 47,700 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec 31 Issued 21,200 shares of common stock at $16 per share. Issued to Sanchez Corp. 4,200 shares of preferred stock for the following assets: equipment with a fair value of $54,900; a factory building with a fair value of $170,000, and land with an appraised value of $252,000. Purchased 1,900 shares of common stock at $16 per share. (Use cost method.) Sold the 1,900 treasury shares at $15 per share. Declared a $0.40 per share cash dividend on the common stock and declared the preferred dividend. Closed the Income Summary account. There was a $188,100 net Income. (a) Record the journal entries for the transactions listed above. (Credit account titles are automatically Indented when amount is entered. Do not indent manually! no entry is required, select "No Entry for the account tities and enter for the amounts. Record entries in the order displayed in the problem statemen Round answers to o decimal places, e.g. $5,275.) Date Account Tities and Explanation Debit Credit Feb. 1 Versic I 2000-2018 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. 8 LOS 4 QX1w1P3 90 MacBook Pro 12 S ENSE DIRECITOS ? M H command

Explanation / Answer

SOLUTION

Date Account titles and Explanation Debit ($) Credit ($) Jan.11 Cash (21,200 * $16) 339,200 Common Stock (21,200 * $10) 212,000 Paid-in Capital in Excess of Par - Common 127,200 Feb.1 Equipment 54,900 Buildings 170,000 Land 252,000 Preferred Stock (4,200 shares * $100.00) 420,000 Paid-in Capital in Excess of Par- Preferred 56,900 July 29 Treasury Stock (1,900 shares * $16.00) 30,400 Cash 30,400 Aug.10 Cash (1,900 shares * $15.00) 28,500 Retained Earnings (1,900 shares * $1.00) 1,900 Treasury Stock (1,900 shares * $16.00) 30,400 Dec.31 Retained Earnings 42,080 Dividend Payable 42,080 Preferred Stock Dividends = 4,200 shares * $100 * 8.00 = $33,600 Common Stock Dividends = 21,200 shares * $0.40 = $8,480.00 Dec.31 Income Summary 188,100 Retained Earnings 188,100

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