Problem

Reporting Stockholders’ EquityWilliamson Corporation was organized in 2011 to operate a ta...

Reporting Stockholders’ Equity

Williamson Corporation was organized in 2011 to operate a tax preparation business. The charter authorized the following capital stock: common stock, par value $2 per share, 80,000 shares. During the first year, the following selected transactions were completed:

a.Sold and issued 50.000 shares of common stock for cash at $50 per share.

b.Bought 1.00 0 shares from a stockholder for cash at $52 per share.

Required:

 

1. Give the journal entry required for each of these transactions.

2. Prepare the stockholders’ equity section as it should be reported on the year-end balance sheet.

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