Question

ABC Company was formed on 7/1/2015. It was authorized to issue 500,000 shares of $10 per value common stock and 100,000 shares of 8%, 25 par value cummulative non participating preffered stock. ABC has June 30th fiscal year.

At IPO 95,000 shares were issued for 31/share (cash). On July 24, 2015-5000 shares were exchanged for a plot of land which had a FVM of $220,000 at the date of the exchange. On March 1, 2017 10,000 shares were issued for $42/share.

On 11/30/2017, ABC purchased 2,000 shares pf it's own stock at $39/share (and elected the cost method).

On 12/15/2017 declared a 5% stock dividend for shareholders of record at 1/15/2018, to be issued on 1/31/18. The stock was selling at $52/share.

On 6/20/2017 ABC sold 500 shares of it treasury for $21,000. ABC issued 100,000 shares of preferred stock at $44/share and dividends on preferred stock was paid at $.50/share.

Re: as of 6/30/2017, ABC had a Re balance of $550,000. For fiscal year ending 2018, ABC reporting NI of $120,000.

Compute Equity section of Balance Sheet and show detailed transactions.

Answer 1

Date	Detail	No. of Share	Amount
Common Stock
30/06/2015	95000 Share issued @ $31	95000	$2,945,000
24/07/2015	5000 Share were issued in lieu of plot of land	5000	$220,000
01/03/2017	10000 Share issued @ $42	1000	$420,000
30/11/2017	2000 shares buyback @$39	-2000	-$78,000
15/12/2017	5% Stock dividen declared on 15/12/2017 , issued (108000*5%)*52	5400	$280,800
20/06/2017	500 Shares isold from treasury	500	$21,000
	Total	104900	$3,808,800
Preferred stock
20/06/2017	issued 100,000 share @ 44	100000	$4,400,000
	Total Equity stock	204900	$8,208,800
	Income earned during the year ended on 2018		$120,000
	Dividend paid on Preferred stock @0.50/share		-$50,000
	Total		$8,278,800