Problem
Comprehensive Stockholders' Equity Transactions In January 2014, Imperial Corporation was organized and authorized to issue 4,000,000 shares of no-par common stock and 100,000 shares of 5 percent, $50 par value, noncumulative preferred stock. The stock-related transactions for the first year's operations are listed below. 1. For each of the below transactions, enter in the blanks provided the account numbers and dollar amounts (as shown in the example) for the account(s) debited and credited. The account numbers are listed below. For compound entries where multiple accounts are debited or multiple accounts are credited, enter the accounts in numerical order. If required, round your answers to the nearest dollar. If an amount box of account number box, does not require an entry, leave it blank. 110 Cash 312 Additional Paid-in Capital 120 Land 313 Paid-in Capital, Treasury Stock 121 Building 340 Retained Earnings 220 Dividends Payable 341 Dividends 305 Preferred Stock 350 Treasury Stock, Common 310 Common Stock 510 Start-up and Organization Costs Account Debited Credited Account Number Dollar Amount Account Number Dollar Amount
Jan. 19 Sold 30,000 shares of common stock for $63,000. State law requires a minimum of $1 stated value per share. 310 $30,000 110 $63,000 312 $33,000
Jan. 21 Issued 10,000 shares of common stock to attorneys and accountants for services valued at $22,000 and provided during the organization of the corporation.
Feb. 7 Issued 60,000 shares of common stock for a building that had an appraised value of $156,000.
Mar. 22 Purchased 20,000 shares of its common stock at $3 per share.
July 15 Issued 10,000 shares of common stock to employees under a stock option plan that allows any employee to buy shares at the current market price, which is now $3 per share.
Aug. 1 Sold 5,000 shares of treasury stock for $4 per share.
Sept. 1 Declared a cash dividend of $0.15 per common share to be paid on September 25 to stockholders of record on September 15.
Sept. 15 Date of record for cash dividends. Sept. 25 Paid cash dividends to stockholders of record on September 15.
Oct. 30 Issued 8,000 shares of common stock for a piece of land. The stock was selling for $3 per share, and the land had a fair market value of $24,000.
Dec. 15 Issued 4,400 shares of preferred stock for $50 per share.
Why is the stockholders' equity section of the balance sheet an important consideration in analyzing the performance of a company? The input in the box below will not be graded, but may be reviewed and considered by your instructor.