and 140,000 shares of $1 par value common stock During the fist month, A-Cell co
ID: 2553606 • Letter: A
Question
and 140,000 shares of $1 par value common stock During the fist month, A-Cell completed the folowing ansactions Click the lcon to view the ransactions 1 Record the ransactions in the genenal joumal 2. Prepare the stockholders equity soctien of A-Cell's balance sheet at Oober 3 1:2016 Asume A Cel'snt income for the month was $93.000 Requirement ?. Roord te trnadors te genrw Oct. 2: Issued 20,000 shares of common stock for a building Date. Accounts and E hares of comonocfor a buiding with a market v of $100,000 6 Issued 850 shares of preferred slook for $150 per share. 0Issued 15,000 shares of common slock for ash of $0,000 0 Dedlared a $20 Oct. 2 Use a soparate Dvidendis Payable account for prelened and comon 25 Paid the cenh dide Ost & Issued 850 shares of prelemed stock for $150p Prit Done Accounts and Explanatio Out 6 h next question Choose from any list or enter any number in the input leids and then continu to theExplanation / Answer
Solution:
Part 1 --- Journal Entry
Date
Account Titles and Explanation
Debit
Credit
Oct.2
Building (Market Value)
$100,000
Common Stock (20,000 Shares x $1 par value)
$20,000
Additional Paid in Capital - Common Stock (Bal. fig)
$80,000
Oct.6
Cash (850 Shares x Issue Price $150)
$127,500
Preferred Stock (850 Shares x Par Value $100)
$85,000
Additional Paid in Capital - Preferred Stock (Bal. fig)
$42,500
Oct.9
Cash
$60,000
Common Stock (15,000 Shares x $1 par value)
$15,000
Additional Paid in Capital - Common Stock (Bal. fig)
$45,000
Oct.10
Retained Earnings
$20,000
Cash Dividend payable
$20,000
Oct.25
Cash Dividend Payable
$20,000
Cash
$20,000
Part 2 --- Stockholder’s Equity Section
Stockholder's Equity Section
Paid in Capital
Preferred Stock (850 Shares x Par value 100)
$850,000
Additional Paid in Capital - Preferred Stock
$42,500
Common Stock (20,000 + 15000)*Par Value $1
$35,000
Additional Paid in Capital - Common Stock (80,000 + 45000)
$125,000
Total Paid in Capital
$1,052,500
Add: Retained Earnings (93,000 - Dividend Paid 20,000)
$73,000
Total Stockholders' Equity
$1,125,500
Note --- In case the titles or word are difference from the given option in the question, please provide the option of stockholders equity section to get the solution.
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Date
Account Titles and Explanation
Debit
Credit
Oct.2
Building (Market Value)
$100,000
Common Stock (20,000 Shares x $1 par value)
$20,000
Additional Paid in Capital - Common Stock (Bal. fig)
$80,000
Oct.6
Cash (850 Shares x Issue Price $150)
$127,500
Preferred Stock (850 Shares x Par Value $100)
$85,000
Additional Paid in Capital - Preferred Stock (Bal. fig)
$42,500
Oct.9
Cash
$60,000
Common Stock (15,000 Shares x $1 par value)
$15,000
Additional Paid in Capital - Common Stock (Bal. fig)
$45,000
Oct.10
Retained Earnings
$20,000
Cash Dividend payable
$20,000
Oct.25
Cash Dividend Payable
$20,000
Cash
$20,000
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