P15-1 (Equity Transactions and Statement Preparation)
mathswordP15-1 (Equity Transactions and Statement Preparation)
On January 5, 2010, Phelps Corporation received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 50,000 shares of $10 par value common stock. It then completed these transactions.
| Jan. 11 | Issued 20,000 shares of common stock at $16 per share. |
| Feb. 1 | Issued to Sanchez Corp. 4,000 shares of preferred stock for the following assets: machinery with a fair market value of $50,000; a factory building with a fair market value of $160,000; and land with an appraised value of $270,000. |
| July 29 | Purchased 1,800 shares of common stock at $17 per share. (Use cost method.) |
| Aug. 10 | Sold the 1,800 treasury shares at $14 per share. |
| Dec. 31 | Declared a $0.25 per share cash dividend on the common stock and declared the preferred dividend. |
| Dec. 31 | Closed the Income Summary account. There was a $175,700 net income. |
13 years ago
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p15-1_equity_transactions_and_statement_preparation.doc
