ment CALCULATOR PILL SCREEN PR Problem 151 Part Level Submis

ment CALCULATOR PILL SCREEN PR Problem 15-1 (Part Level Submission) On January 5, 2017, Stellar Corporation received a charter granting the right to Issue 5,200 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 47,700 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec 31 Issued 21,200 shares of common stock at $16 per share. Issued to Sanchez Corp. 4,200 shares of preferred stock for the following assets: equipment with a fair value of $54,900; a factory building with a fair value of $170,000, and land with an appraised value of $252,000. Purchased 1,900 shares of common stock at $16 per share. (Use cost method.) Sold the 1,900 treasury shares at $15 per share. Declared a $0.40 per share cash dividend on the common stock and declared the preferred dividend. Closed the Income Summary account. There was a $188,100 net Income. (a) Record the journal entries for the transactions listed above. (Credit account titles are automatically Indented when amount is entered. Do not indent manually! no entry is required, select \"No Entry for the account tities and enter for the amounts. Record entries in the order displayed in the problem statemen Round answers to o decimal places, e.g. $5,275.) Date Account Tities and Explanation Debit Credit Feb. 1 Versic I 2000-2018 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. 8 LOS 4 QX1w1P3 90 MacBook Pro 12 S ENSE DIRECITOS ? M H command

Solution

SOLUTION

Date	Account titles and Explanation	Debit ($)	Credit ($)
Jan.11	Cash (21,200 * $16)	339,200
	Common Stock (21,200 * $10)		212,000
	Paid-in Capital in Excess of Par - Common		127,200
Feb.1	Equipment	54,900
	Buildings	170,000
	Land	252,000
	Preferred Stock (4,200 shares * $100.00)		420,000
	Paid-in Capital in Excess of Par- Preferred		56,900
July 29	Treasury Stock (1,900 shares * $16.00)	30,400
	Cash		30,400
Aug.10	Cash (1,900 shares * $15.00)	28,500
	Retained Earnings (1,900 shares * $1.00)	1,900
	Treasury Stock (1,900 shares * $16.00)		30,400
Dec.31	Retained Earnings	42,080
	Dividend Payable		42,080
	Preferred Stock Dividends = 4,200 shares * $100 * 8.00 = $33,600
	Common Stock Dividends = 21,200 shares * $0.40 = $8,480.00
Dec.31	Income Summary	188,100
	Retained Earnings		188,100