Problem
JPP Company had the following transactions in 2015, In its first year of operations.
• Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00 per share.
• Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par.
• Earned net income of $35,000.
• Paid no dividends.
The company charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock.
Requirements:
Prepare the journal entries to record the issue of the sharers as per info provided above.
Based on the info presented above compute the total paid in capital. (show your workings.)
Prepare the stockholders' equity section of the balance sheet at December 31, 2015.