ACC 206 Week 1 P12-30A

ACC 206 Week 1 P12-30A

P12-30A Issuing stock and preparing the stockholders equity section of the balance sheet [1520 min]

Lincoln-Priest, Inc., was organized in 2011. At December 31, 2011, the Lincoln-Priest balance sheet reported the following stockholders equity:

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.

1. Prepare the stockholders equity section of the Lincoln-Priest balance sheet at December 31, 2012.