Question

Dear Students You are required to work in your sub-groups to answer the discussion question. Question Matchlessly, Inc., was organized in 2017. At December 31, 2017, the company's Balance sheet reported the following stockholders' equity Matchlessly, Inc. Stockholders Equity December 31,2017 $ 61,000 Paid-in Capital Preferred stock, 7%, $40 par. 200,000 shares authorized none issued Common stock, $1 par, 600,000 shares authorized, 61,000 shares issued and outstanding Paid-in capital in excess of par-common Total paid.in capital Retained eamings Total Stockholders' equity 41.000 102,000 29.000 $131.000 Requirements: 1. During 2018, the company completed the following selected transactions and you are required to 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 Loss for the year was $79,000, and the company declared no dividends. Make the closing entry for Net Loss. 2. Prepare the stockholders' equity section of the Matchlessly Balance sheet as at December 31, 2018 Guidelines for posting: same as previous discussions Guidelines for critically responding same as previous discussions

Answer 1

		in $
Trans	Accounts Title	Dr	Cr
a	Cash	52000
	Preferred Stock		52000
b)	Cash	12000
	Common Stock (2400*1)		2400
	Paid in capital in excess of par-Common (2400*4)		9600
c)	Retained Earning	$79,000
	Income Summary		$79,000
	Stockholder Equity
	December 31 2018
	Paid in capital	in $
	Preferred Stock 7$ $40 par 1300 shares issued and outstanding	52000
	Common stock $1 par 63400 shares issued and outstanding	63400
	Paid in capital in excess of par-common (41000+9600)	50600
	Total paid in capital	166000
	Retained Earnings (29000-79000)	-50000
	Total stockholder equity	116000
If any doubt please comment