Financial Accounting: P12-3B The stockholders equity accounts of Port Corporation

Financial Accounting

P12-3B
The stockholders equity accounts of Port Corporation on January 1, 2008 were as follows.
Preferred stock (8%, $50 par cumulative, 10,000 shares authorized, 8,000 shares issued and outstanding) 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) 40,000

During 2008 the corporation had the following transactions and events pertaining to its stockholders equity.
Feb 1 Issued 25,000 shares of common stock for $100,000
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 $30,000
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
A.) Journalize the transactions and the closing entry for net income
B.) Enter the beginning balances in the accounts, and post the journal entries to the stock holders equity accounts (use J5 for the posting reference.)
C.) Prepare a stockholders equity section at December 31, 2008, including the disclosure of the preferred dividends in arrears.
D.) Compute the book value per share of common stock at December 31, 2008 assuming the preferred stock does not have a call price.
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