Answer Happy

On January 5, Year 7, Ida Baker Corporation received a charter
granting the right to issue 5,000 shares of $100 par value, 8%
cumulative preferred stock and 50,000 shares of $10 par value
common stock. It then completed the following transactions:
January 11 Issued 20,000 shares
of common stock at $16 per share
February 1 Issued to Musk
Corporation 4,000 shares of preferred stock for the following
assets: equipment with a fair value of
$50,000; a factory building with a fair value
of $160,000; and land with a fair
value of $270,000
July 29

Purchased 1,800 treasury shares at $17 per share; use the cost
method
August 10 Sold the 1,800
treasury shares at $14 per share
December 31 Declared the preferred dividend and a
$0.25 per share cash dividend on the
common stock
December 31 Closed the Income Summary account; net income
for the year was $175,700
Instructions:
A. Record the journal entries for the transactions listed above.
Post to T-accounts as you go.
B. Prepare the stockholders’ equity section of Ida Baker
Corporation’s balance sheet as of
December 31, Year 7. The check
figure for Total Stockholders’ Equity is $933,300.