AC 302 Chapter 15 Problem Question 1

AC 302 Chapter 15 Problem Question 1 
Name				Date		
Instructor				Course	
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
P15-1 (Equity Transactions and Statement Preparation) On January 5, 2012, Phelps Corporation						
received a charter granting the right to issue			5,000 	shares of	$100.00 	par value,
8%	cumulative and nonparticipating preferred stock, and				50,000 	shares of
$10.00 	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					$110,000 
	and, land with an appraised value of			$270,000 		
Jul 29	Purchased	1,800 	shares of common stock at		$19 	per share. 
	(Use the 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.
						
Instructions:						
(a) Record the journal entries for the transactions listed above.						
						
Jan 11, 12	Account Title				Amount	
	Account Title					Amount
	Account Title					Amount
						
Feb 1, 12	Account Title				Amount	
	Account Title				Amount	
	Account Title				Amount	
	Account Title					Amount
	Account Title					Amount
						
Jul 29, 12	Account Title		34200		Amount	
	Account Title					Amount
						
Aug 10, 12	Account Title		25,200*		Amount	
	Retained Earnings				Amount	
	Account Title					Amount
*(The debit is made to Retained Earnings because no Paid-in Capital *from Treasury Stock exists.)						
						
Dec 31, 12	Account Title		9,000*		Amount	
	Account Title					Amount
						
						
						
						
Dec 31, 12	Account Title				Amount	
	Account Title					Amount
						
"(b) Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of
     December 31, 2012."						
						
	PHELPS CORPORATION					
	Statement of Stockholders' Equity					
	December 31, 2012					
	Capital Stock					
	Enter text here.					Amount
						
						
	Enter text here.					Amount
						
	Total capital stock					Formula
	Additional Paid-in Capital					
	Text Title				Amount	
	Text Title				Amount	Formula
	Text Title					Formula
	Text Title					Amount
	Total stockholders’ equity					Formula