The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their deci

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The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information which is grouped according to your first name initial
a. Issued ___30%_shares of class A common stock. Stock has par value of __20.00_ per share and was issued at $_28.00___ per share.
b.Issued ____30%_ shares of no-par class B stock
c. Issued _50%______ shares of preferred stock at par value.
d,Exchanged __40%____ shares of class A common stock for Office Furniture and Equipment with an appraised value of $_4,000,000.00_____ and Motor Truck with an appraised value of $__10,000,000.00___.
e.. Earned Net income $_1,500,000.00_____.
d.Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders.
Prepare the journal entries with narrations to record the following:
The issuances of stock.
Close out net income to retained earnings.
Dividend declared.
Close out dividend to retained earnings.
Prepare the company’s Stockholders equity section of the balance sheet at December 31, 2021
information on par or par values for all classes of shares which must be shown separately.
the number of shares authorized and issued where necessary.
the sub total for the total paid in capital.
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