Question

9:18 AM Mon Jan 20 C13 #2 Problem 13-03A a-c (Video) The stockholders' equity accounts of Blue Spruce Corporation on January 1, 2020, were as Preferred Stock (8%, $48 par, 10,500 shares authorized) Common Stock (51 stated value, 1,950,000 shares authorized Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (11,000 common shares) $ 408,000 1,100,000 125,000 1,400,000 1,850,000 44,000 During 2020, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 25,500 shares of common stock for $120,000. Apr. 14 Sold 6,000 shares of treasury stock-common for $32,600. Sept. 3 Issued 4,800 shares of common stock for a patent valued Nov. 10 Purchased 1,100 shares of common stock for Dec. 31 Determined that net income for the year was $450,000. 8 No dividends were declared during the year. 3385 E Journalize the transactions and the closing entry journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Feb. 1 Cash 120000 Common Stock 25500 Pald-in Capital in Excess of Par-Common Stock 94500 Cash 32600 Treasury Stock 24000 Paid-in Capital from Treasury Stock 8600 Sept. 3 Cash Common Stock 4800 30900 Nov. 10 Common Stock 5900 - Cash 5900

Answer 1

Date	Account Titles	Debit	Credit
Feb-01	Cash	$   1,20,000
	Common Stock		$      25,500
	Paid in Capital in Excess of Stated Value - Common stock		$      94,500
Apr-14	Cash	$      32,600
	Treasury Stock		$      24,000
	Paid in Capital from Treasury stock		$        8,600
Sep-03	Patent	$      35,700
	Common Stock		$        4,800
	Paid in Capital in Excess of Stated Value - Common stock		$      30,900
Nov-10	Treasury Stock	$         5,900
	Cash		$        5,900
Dec-31	Income Summary	$   4,50,000
	Retained Earnings		$   4,50,000

Preferred Stock
Date	Account Titles	Debit	Credit	Balance
Jan-01	Balance		$   4,08,000	$   4,08,000
Common Stock
Date	Account Titles	Debit	Credit	Balance
Jan-01	Balance		$11,00,000	$11,00,000
Feb-01	Issue of Stock for cash		$      25,500	$11,25,500
Sep-03	Issue of Stock in exchange of patent		$        4,800	$11,30,300
Paid in Capital in excess of par - Preferred stock
Date	Account Titles	Debit	Credit	Balance
Jan-01	Balance		$   1,25,000	$   1,25,000
Paid in Capital in excess of stated value - Common stock
Date	Account Titles	Debit	Credit	Balance
Jan-01	Balance		$14,00,000	$14,00,000
Feb-01	Issue of Stock for cash		$      94,500	$14,94,500
Sep-03	Issue of Stock in exchange of patent		$      30,900	$15,25,400
Paid in capital from treasury stock
Date	Account Titles	Debit	Credit	Balance
Apr-14	Cash		$        8,600	$        8,600
Retained Earnings
Date	Account Titles	Debit	Credit	Balance
Jan-01	Balance		$18,50,000	$18,50,000
Dec-31	Net Income		$   4,50,000	$23,00,000
Treasury Stock
Date	Account Titles	Debit	Credit	Balance
Jan-01	Balance	$      44,000		$      44,000
Apr-14	Cash		$      24,000	$      20,000
Nov-10	Cash	$         5,900		$      25,900

Stockholder's Equity
Paid in Capital
Capital Stock
Preferred Stock	$   4,08,000
Common Stock	$ 11,30,300
Total Capital Stock		$15,38,300
Additional Paid in capital
Paid in Capital in excess of par - Preferred stock	$   1,25,000
Paid in Capital in excess of stated value - Common stock	$ 15,25,400
Paid in capital from treasury stock	$         8,600
Total Additional Paid in capital		$16,59,000
Total Paid in Capital		$31,97,300
Retained Earnings		$23,00,000
Total Paid in Capital and Retained Earnings		$54,97,300
Less :
Treasury Stock		$      25,900
Total Stockholders Equity		$54,71,400