Question

SECTION 2 (30 points) Martin Corporation began operations on January 1, 2020. The company was authorized to issue up to 3 million shares of $4 par value common stock. The following transactions occurred in 2020. January 1 Issued 60,000 shares of common stock for $27 cash per share. X April 24 Issued 6,000 shares of common stock for land with a fair market value of $192,000. June 30 Directors declared a $.70 per share cash dividend payable on August 2nd to the July 24th stockholders of record. August 2 Paid the cash dividend declared on June 30th September 5 Declared a 10% common stock dividend when the common stock's market value is $36 per share. October 4 Issued stock dividend that was declared on September 5th October 21 Purchased 7,000 shares of its own common stock at $38 cash per share. November 10 Sold 2,000 shares at $40 cash per share of treasury common stock purchased on October 21st. December 22 Sold the remaining 5,000 shares of its treasury common stock at $31 cash per share. December 31 The company had net income of $358,617 and closed the Income Summary account.

Can I please have some assistance getting the right answer and a step by step guide.

Not sure what not able to read it properly means? Do you mean it's blurry or what?

Answer 1

Date	Account Titles	Debit	Credit
Jan-01	Cash	$   1,620,000		=60000*27
	Common Stock		$       240,000	=60000*4
	Paid in capital in excess of par - common stock		$    1,380,000	=1620000-240000
	(Issue of 60000 shares @ $27)
Apr-24	Land	$      192,000
	Common Stock		$          24,000	=6000*4
	Paid in capital in excess of par - common stock		$       168,000	=192000-24000
	(Issue of 6000 shares for land)
Jun-30	Retained Earnings/Cash Dividend	$         46,200		=(60000+6000)*0.7
	Cash Dividend Payable		$          46,200
	(Cash dividend declared)
Aug-02	Cash Dividend Payable	$         46,200
	Cash		$          46,200
	(Dividend paid in cash)
Sep-05	Retained Earnings/Stock Dividend	$      237,600		=(60000+6000)*10%*36
	Stock Dividend Payable		$          26,400	=(60000+6000)*10%*4
	Paid in capital in excess of par - common stock		$       211,200	=237600-26400
	(Declared 10% stock dividend)
Oct-04	Stock Dividend Payable	$         26,400
	Common Stock		$          26,400
	(Issued stock dividend)
Oct-21	Treasury Stock	$      266,000		=7000*38
	Cash		$       266,000
	(Purchased 7000 shares)
Nov-10	Cash	$         80,000		=2000*40
	Treasury Stock		$          72,000	=2000*36
	Paid in capital from Treasury Stock		$            8,000	=80000-72000
	(Sold 2000 shares of treasury stock)
Dec-22	Cash	$      155,000		=5000*31
	Paid in capital from Treasury Stock	$           8,000
	Retained Earnings	$         17,000		=180000-155000-8000
	Treasury Stock		$       180,000	=5000*36
	(Sold 5000 shares of treasury stock)
Dec-31	Income Summary	$      358,617
	Retained Earnings		$       358,617
	(Net income transferred)