College Accounting: Chapter 20 Mastery Problem - Stockholders equity accounts of Gonzales

College Accounting
Chapter 20 Mastery Problem
Stockholders' equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below.
Preferred stock subscriptions receivable 50,000
Preferred stock, $10 par, 9% (200,000 shares authorized; 20,000 shares issued) 200,000
Preferred stock subscribed (10,000 shares) 100,000
Paid-in capital in excess of par - preferred stock 40,000
Common stock, $10 par (100,000 shares authorized; 60,000 shares issued) 600,000
Paid-in capital in excess of par - common stock 250,000
Retained earnings 750,000
During 20--, Gonzales Company completed the following transactions affecting stockholders' equity:
a. Received $20,000 for the balance due on subscriptions for preferred stock with a par value of $40,000 and issued the stock.
b. Purchased 10,000 shares of common treasury stock for $18 per share.
c. Received subscriptions for 10,000 shares of common stock at $19 per share, collecting down payments of $45,000.
d. Issued 15,000 shares of common stock in exchange for land with a fair market value of $290,000.
e. Sold 5,000 shares of common treasury stock for $100,000.
f. Issued 10,000 shares of preferred stock at $11.50 per share, receiving cash.
g. Sold 3,000 shares of common treasury stock for $17 per share.

1. Prepare general journal entries for the transactions, identifying each transaction by letter.
2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of $300,000.
3. Prepare the stockholders' equity section of the balance sheet as of December 31, 20--. Net income for the year was $825,000 and dividends of $400,000 were paid.
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