In 2019 the company Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. 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: The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: Jewelers purchased a piece of land from the original owner. In payment for the land, Jewelers issues 410,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,560,000 2. The company sold 155,000 shares of common stock with $1 par value. 3. Issued 25,000 shares of $19 par value preferred stock. Shares were issued at par. 4. Earned net income of $ 880,000 5. Dividend declared and paid - $0.15 per share on common stock 6. Dividend declared and paid - $5 per share on preferred stock Using the information above and as guided: Prepare the owner’s equity section of the balance sheet based on the information above.
In 2019 the company Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. They have asked each student from your accounting course to prepare the company’s
The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration:
- Jewelers purchased a piece of land from the original owner. In payment for the land, Jewelers issues 410,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,560,000
2. The company sold 155,000 shares of common stock with $1 par value.
3. Issued 25,000 shares of $19 par value preferred stock. Shares were issued at par.
4. Earned net income of $ 880,000
5. Dividend declared and paid - $0.15 per share on common stock
6. Dividend declared and paid - $5 per
Using the information above and as guided:
Prepare the owner’s equity section of the balance sheet based on the information above.
Step by step
Solved in 2 steps with 1 images
