| | Accounting, 9e |
| | P12-30A | Issuing stock and preparing the stockholders' equity section of the balance sheet |
| | LO 3 [15-20 minutes] |
| | | | Students please fill-in areas that are shaded |
| | Student Name |
| | Course Name |
| | Student ID: |
| | Date: |
| | Lincoln-Priest, Inc., was organized in 2011. At December 31, 2011, the Lincoln- |
| | Priest balance sheet reported the following stockholders’ equity: |
| | LINCOLN-PRIEST, INC. |
| | Stockholders' Equity |
| | December 31, 2011 |
| | Paid-in Capital: |
| | Preferred stock, 7%, $40 par, 110,000 shares authorized, none issued | | | | | $0 |
| | Common stock, $1 par, 520,000 shares authorized, 61,000 shares issued |
| | and outstanding | | | | | $61,000 |
| | Paid-in capital in excess of par - common | | | | | 41000 |
| | | Total paid-in capital | | | | $102,000 |
| | Retained earnings | | | | | 29000 |
| | Total stockholders' equity | | | | | $131,000 |
| | Requirements |
| | 1. | During 2012, the company completed the following selected transactions. |
| | | Journalize each transaction. Explanations are not required. |
| | | a. Issued for cash 1,300 shares of preferred stock at par value. |
| | | b. Issued for cash 2,400 shares of common stock at a price of $5 per share. |
| | | c. Net income for the year was $74,000, and the company declared no dividends. |
| | | Make the closing entry for net income. |
| | 2. | Prepare the stockholders’ equity section of the Lincoln-Priest balance sheet at |
| | | December 31, 2012. |
| | Test Your Knowledge |
| | P12-30A |
| | Req. 1 |
| | Journal |
| | DATE | ACCOUNTS AND EXPLANATIONS | | | DEBIT | CREDIT |
| | a. |
| | b. |
| | c. |
| | Req. 2 |
| | | LINCOLN-PRIEST, INC. |
| | | Stockholders' Equity |
| | | Paid-in capital: |
| | | Paid-in capital in excess of par - common | | | 41,000 |
| | | Total paid-in capital | | | 41,000 |
| | | Retained earnings |
| | | Total stockholder's equity | | | $ 41,000 |
| | | *61,000 + 2,400 = 63,400 shares |
giry1021
hho9e_p12_30a_eip_stud.xlsx
