Question

On January 5, 2017, Sheridan Corporation received a charter granting the right to issue 5,500 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 48,400 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 Issued 21,900 shares of common stock at $ 16 per share. Issued to Sanchez Corp. 3,900 shares of preferred stock for the following assets: equipment with a fair value of $50,800; a factory building with a fair value of $169,000; and land with an appraised value of $294,000. Purchased 1,800 shares of common stock at $18 per share. (Use cost method.) Sold the 1,800 treasury shares at $14 per share. Declared a $0.30 per share cash dividend on the common stock and declared the preferred dividend. Closed the Income Summary account. There was a $173,800 net income. Record the journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record entries in the order displayed in the problem statement. Round answers to o decimal places, e.g. $5,275.) Date Account Titles and Explanation Debit Credit Jan. 11 ) Cash Common Stock Paid-in Capital in Excess of Par - Common Stock Feb. 1 Equipment Buildings Land

Answer 1

Journal Entry
Date	Account Titles and Explanation	Debit	Credit
11-Jan	Cash (21900 X $16)	$350,400.00
	Common Stock (21900 X $10)		$219,000.00
	Paid-In Capital In Excess Of Par-Common Stock		$131,400.00
	TO Record issue of Common Stock
1-Feb	Equipment	$50,800.00
	Factory Building	$169,000.00
	Land	$294,000.00
	Preferred Stock (3900 X $100)		$390,000.00
	Paid-In Capital In Excess Of Par-Preferred Stock		$123,800.00
	TO Record issuance of preferred stock
29-Jul	Treasury Stock (1800 X $18)	$32,400.00
	Cash		$32,400.00
	TO Record acquired Treasury Stock
10-Aug	Cash (1800 X $14)	$25,200.00
	Retained Earnings (BF)	$7,200.00
	Treasury Stock (1800 X $18)		$32,400.00
	TO Record sale of Tresury Stock
Dec. 31	Retained Earnings	$33,870.00
	Dividend Payable - Preferred ( 3900X 100*7%)		$27,300.00
	Dividends Payable (21900*0.30)		$6,570.00
	TO Record Declearation of Dividend
Dec. 31	Income Summary	$173,800.00
	Retained Earnings		$173,800.00
	TO Record Income Summary Closure

Sheridan Corporation
Stockholder' Equity Section of the Balance Sheet
31-Dec-17
Paid-in Capital
Capital Stock:
7% Cumulative Preferred stock, $100 par value, 5,500 shares authorized, issued, and outstanding	390000
Common stock-$10 par value, 48,400 shares authorized, 21,900 shares issued outstanding	219000
Total capital stock	609000
Paid-in capital in excess of par:
Paid-in capital in excess of par value, preferred stock	123800
Paid-in capital in excess of par value, common stock	131400
Total paid-in capital in excess of par	255200
Total paid-in capital	864200
Retained Earnings (173800-33870-7200)	$132,730.00
Total stockholders' equity	$996,930.00