The following information applies to the questions displayed

[The following information applies to the questions displayed below. Prairie Corp. completed the following transactions in 2014, the first year of operation: 1. Issued 19,000 shares of $5 par common stock at par. 2. Issued 1,800 shares of $34 stated value preferred stock at $36 per share 3. Purchased 400 shares of common stock as treasury stock for $7.5 per share 4. Declared a 5 percent cash dividend on preferred stock. 5. Sold 200 shares of treasury stock for $10.5 per share 6. Paid the cash dividend on preferred stock that was declared in Event 4 7. Earned revenue of $71,400 and incurred operating expenses of $38,050. 8. Appropriated $6,500 of retained earnings.

Solution

Solution:

PRAIRIE Corp
Accounting Equation for the year 2014
Event	Assets	=	Liabilities	Stockholder\'s Equity
Cash	=	Dividends Payable	+	Preferred Stock		Common Stock	+	Paid in capital in excess Preferred stock	+	Paid in capital in excess treasury stock	-	Treasury Stock	+	Retained Earnings	+	Appropriated Retained Earnings	Accounting Title retained Earnings
1	$95,000.00						$95,000.00
2	$64,800.00				$61,200.00				$3,600.00
3	-$3,000.00												$3,000.00
4			$3,060.00												-$3,060.00			Dividends
5	$2,100.00										$600.00		-$1,500.00
6	-$3,060.00		-$3,060.00
7a	$71,400.00														$71,400.00			Revenue
7b	-$38,050.00														-$38,050.00			Expenses
8															-$6,500.00		$6,500.00
Totals	$189,190.00		$0.00		$61,200.00		$95,000.00		$3,600.00		$600.00		$1,500.00		$23,790.00		$6,500.00