case 10-95 continuing problem : Front Row Entertainment. xxxxxxx Front Row was a
ID: 452694 • Letter: C
Question
case 10-95 continuing problem : Front Row Entertainment. xxxxxxx Front Row was authorized to issue 25,000 shares of its $1 par common stock. On January 1, 2013, it issued Cam and Anna 8,000 shares each for $1 per share. Front Row was also authorized to issue 20,000 shares of 8%, $50 par preferred stock. The following transactions occurred during the remainder of 2014. *June 15: Issued 2,000 shares of $1 par common stock to Steve for $20 per share. *July 1 : Issued 3,000 shares of $50 prefered stock to family members for $75 per share *July 10 : Repurchased 700 common shares at $16 per share. *Aug 5 : The board of directors declared a $25,000 dividends to all stockholders of record on August 31, 2014. The dividend will be paid on September 15, 2014. *Sept 15: The $25,000 dividend was paid. *Dec 15 : 300 of the treasury shares were reissued at $22 per share. Front Row had $53,250 of retained earnings to be included in the December 31, 2014 balance sheet. Question 1. Prepare the journal entries to record the above transactions. Question 2 : Prepare the stockholders' equity section of the balance sheet at December 31, 2014.
Explanation / Answer
Question 1. Prepare the journal entries to record the above transactions.
Answer :
Question 2 : Prepare the stockholders' equity section of the balance sheet at December 31, 2014.
Answer :
Front Row Entertainment Perticular Debited Amount Credited Issued Cam and Anna 8,000 shares 8000 8000 Issued 2,000 shares of $1 par common stock to Steve for $20 per share 40000 40000 Issued 3,000 shares of $50 prefered stock to family members for $75 per share 225000 225000 Repurchased 700 common shares at $16 per share 11200 11200 The board of directors declared a $25,000 dividends to all stockholders of record on August 31, 2014 25000 25000 300 of the treasury shares were reissued at $22 per share. 6600 6600 315800 315800Related Questions
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