Stockholders Equity Transactions Journal Entries And T Accounts The Stockholders Equity Of Xeltron Corporation At Ja 1 (108.94 KiB) Viewed 46 times
Stockholders' Equity Transactions, Journal Entries, and T-Accounts The stockholders' equity of Xeltron Corporation at January 1 follows: 9% Preferred stock, $110 par value, 20,000 shares authorized; 6,000 shares issued and outstanding Common stock, $2 par value, 100,000 shares authorized; 40,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock Paid-in capital in excess of par value-Common stock Retained earnings Total Stockholders' Equity $660,000 $80,000 400,000 800,000 760,000 $2,700,000 The following transactions, among others, occurred during the year: Jan. 1 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $1 per share. The authorization was increased to 300,000 shares. Mar. 31 Converted $110,000 face value of convertible bonds payable (the book value of the bonds was $114,000) to common stock. Each $1,000 bond converted to 125 shares of common stock. June 1 Acquired equipment with a fair market value of $35,000 in exchange for 200 shares of preferred stock. Sept. 1 Acquired 10,000 shares of common stock for cash at $21 per share. Nov. 21 Issued 5,000 shares of common stock at $23 cash per share. Dec. 28 Sold 1,000 treasury shares at $24 per share. Dec. 31 Closed net income of $210,000 to the Retained Earnings account.
Required a. Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances. HINT: Complete part b. below prior to entering any additional T-account data. Bonds Payable 0 Sep.01 Nov.21 Dec.28 Beg. Jun.01 Bal. Cash 0 0 0 Dec.28 Bal. Preferred Stock 0 ooo 0 0 0 0 0 0 0 0 Paid-in-Capital from Treasury Stock 0 0 0 0 Mar.31 Beg. Mar.31 Nov.21 Bal. Common Stock 0 OOOO 0 0 0 OOO 0 Treasury Stock - Common Sept.01 Dec.28 Bal. 0 0 0 0 0 OOO 0 Premium on Bonds Payable Mar.31 0 0 Beg. Jun.01 Bal. Paid-in-Capital in Excess of Par Value - Preferred Stock 0 0 0 0 0 0 Retained Earnings Bal. Dec.31 Bal. OOO 0 0 OOO 0 0 Jun.01 0 Equipment 0 0 Paid-in-Capital in Excess of Par Value - Common Stock 0 0 0 0 0 0 0 0 Beg. Mar.31 Nov.21 Bal.
b. Prepare journal entries for the given transactions and post them to the T-accounts above in part a. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. Date General Journal Description Jan.01 (Memorandum) Common Stock split 2 for 1. Mar.31 Jun.01 Sept.01 Nov.21 Dec.28 Premium on Bonds Payable Common Stock To record conversion of bonds. Paid-in-Capital in Excess of Par Value - Preferred Stock Issued preferred stock in exchange for equipment. Purchased treasury stock. Common Stock Issued common stock. Paid-in-Capital from Treasury Stock To record sale of treasury stock. ◆ + ◆ ♦ → ◆ " ◆ ♦ $ Debit 0 $ oooo 0 0 0 0 OOO 0 0 0 OOO 0 0 ܘ ܘ ܘ Credit oooo 0 OOO 0 0 Ooo OOO 0
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