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Davis Corporation was authorized to issue 100,000 shares of $10 par common

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Question;Davis Corporation was authorized to issue 100,000 shares of $10 par common stock and 50,000 shares of $50 par, 6 percent, cumulative preferred stock. Davis Corporation completed the following transactions during its first two year of operation.2012Jan 2 Issued 5,000 shares of $10 par common stock for $28 per shareJan 14 Issued 1,000 shares of $50 par preferred stock for $70 per shareFeb 14 Issued 15,000 shares of $10 par common stock for $30Dec 31 During the year, earned $170,000 of cash service revenue and paid $110,000 of cash operating expenses.Dec 31 Declared the cash dividend on outstanding shares of preferred stock for 2012. The dividend will be paid on Jan 31 to stockholders of record on January 15, 20132013Jan 31 Paid the cash dividend declared on December 31, 2012Mar 1 Issued 2,000 share of $50 par preferred stock for $58 per shareJun 1 Purchased 500 shares of common stock as treasury stock at $43 per shareDec 31 During the year, earned $210, of cash service revenue and paid $175,000 of cash operating expenseDec 31 Declared the dividend on the preferred stock and a $0.60 per share dividend on the common stockA. Organize the transaction data in accounts under an accounting equationB. Prepare the stockholders? equity section of the balance sheet at December 31, 2012C. Prepare the balance sheet at December 31, 2013

 

Paper#41987 | Written in 18-Jul-2015

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