Acc280 Financial Accounting: P13-3A The stockholders' equity accounts of Neer Corporation

Acc280 Financial Accounting

P13-3A
The stockholders' equity accounts of Neer Corporation on January 1, 2010, were as follows.
Preferred Stock (8%, $50 par, cumulative, 10,000 shares authorized) 400,000
Common Stock ($1 stated value, 2,000,000 shares authorized) 1,000,000
Paid-in Capital in Excess of Par Value-Preferred Stock 100,000
Paid-in Capital in Excess of Stated Value-Common Stock 1,450,000
Retained Earnings 1,816,000
Treasury Stock-Common (10,000 shares) 50,000

During 2010, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb. 1 Issued 25,000 shares of common stock for $120,000.
Apr. 14 Sold 6,000 shares of treasury stock-common for $33,000.
Sept. 3 Issued 5,000 shares of common stock for a patent valued at $35,000.
Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,000.
Dec. 31 Determined that net income for the year was $452,000.
No dividends were declared during the year.

Instructions:
1. Journalize the transactions and the closing entry for net income. List multipled debits/credits in the order of magnitude.
2. Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (If answer is zero, please enter 0, do not leave any fields blank).
3. Complete a stockholders' equity section at December 31, 2010.
Powered by