Assume that the companyrsquos corporate charter authorized


Assume that the company’s corporate charter authorized a total of 200,000 shares of $1 par value, common stock. The company issued 50,000 shares of stock in early January for a selling price of $10 per share. Assume that net income for the first year (year 2012) was $300,000. Also assume that the company had declared and paid a cash dividend of $10,000 during this year. Prepare the journal entry to record the issuance of stock. Use the date of Jan 15. Date Account Name Debit Credit Prepare the complete stockholder’s equity section of the balance sheet at the end of the company’s first year based on the information above and impact of net income and cash dividend paid to retained earnings. Use the template below. Make sure you complete all of the items (there are three blanks lines to fill in and dollar amounts for par value, PIC in excess of par, RE and total SE). STOCKHOLDER’S EQUITY: Common stock - ____ par value, _________ shares authorized _________ shares issued and outstanding. Paid in capital in excess of par, common stock Retained earnings ________ Total stockholder’s equity

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Financial Accounting: Assume that the companyrsquos corporate charter authorized
Reference No:- TGS01592253

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