Question

Need financial accounting help please

Stockholders' Equity Transactions, Journal Entries, and T-Accounts The stockholders equity of Fremantle Corporation at January 1 follows: B Percent preferred stock, $110 par value, 20,000 shares $440,000 authorired: 4,0co shares issued and putstanding Con value, 10,04 utstanding 150,000 Paid-in capital in excess af par value Preferred stock 200.000 Paid-in capital in excess of par value-Common stocko Retained earnings 550000 150 0f0 Total Stotkhalders' Equity The following transactions, among others, occurred during the year: 1Announced a 2-for-1 common stock salit, reducing the par value of the common stock to s2 per share, Jan Mar 1 Converted $90,000 face value of convertible bonds payable (the book value of the bonds was $93,000) to common stock. Each $1,000 bond converted to 125 shares of common stock. preferred stock. 1Acquired equipment with a fair market value of s60,000 in excharge for 500 shares lune Acquirrd 10,000 shares of comman stock for cash at $20 per share Sept 21 Issued 5.0o0 shares of common stock at $23 cash per share. No. Dec. $24 per share. 28 Sold 1.000 treasury shares 31 Clased net incpme af $107.coo, to the Retained Earnings account. Required a. Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances. HINT: Complete part b clow prior to entering any additional T-account data. Cash Bonds Payable Premium on Bonds Payable Equipment Mar 31 5еp01 Mar.3 Jun.01 0 Nav.21 Doc 28 Paid-in-Capital in Excess of Par Value - Common Stock Paid-in-Capital in Excess of Par Value Preferred Stock Preferred Stock Common Stock Вер. Mar 3 Вер. Bg. Вeр. un.01 Jun.01 Mar.31 0 Bal Ba Nov27 0 0 Nov 21 Bal. Ral Paid-in-Capital from Treasury Stocke Retained Eamings Treasury Stock- Common Dec 28. Sept01 Ba Ba C Dec.28 Dec 31 Bal. .Prepare journal entries for the given transactions and post them to the T-accounts above in part a. Do not prepare the jounal entry for the Dec. 31 transaction, but post the approprate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. ral Journal Credi Date Desc Debit (Merorandury Cormon Siuck plt 2 fur 1 len 01 Mar 31 Rends Payahles 93000 t Premium on Bonds Pavable 143,250 C PerinCanital in Estess uf Per Value Common Stock 225000 Ta receud convers 0n af bonds 6Л00 lun 01. Equipment Preferred Stock 55,000 red Steck Sep.01 Traasury Srark Comman Pad in Capital fram Troasury Stock Purchased ireasury stock Nov 21 Commen Stack Pad-in Coptal in Expess af Par valuc Comman Stock # Issued cuinnen stock Cash Paidio.Canltal from Troasury Stock T ry aakoa ccs

Answer 1

1. In the books of Fremantle Corporation :

Date	General Journal	Debit	Credit
		$	$
Jan 1	No journal entry required	0	0
Mar 31	Bonds Payable	90,000
	Premium on Bonds Payable	3,000
	Common Stock ( 90 bonds x 125 shares x $ 2)		22,500
	Paid-in Capital in Excess of Par Value: Common Stock		70,500
June 1	Equipment	60,000
	Preferred Stock		55,000
	Paid-in Capital in Excess of Par Value: Preferred Stock		5,000
Sept 1	Treasury Stock	200,000
	Cash		200,000
Nov 21	Cash	115,000
	Common Stock		10,000
	Paid-in Capital in Excess of Par Value: Common Stock		105,000
Dec 28	Cash	24,000
	Treasury Stock		20,000
	Paid-in Capital: Treasury Stock		4,000
Dec 31	Income Summary	107,000
	Retained Earnings		107,000

2.

Cash
Nov 21	115,000	Sept 1	200,000
Dec 28	24,000
Equipment
June 1	60,000
Bonds Payable
Mar 31	90,000	Balance, Jan 1	90,000
		Balance, Dec 31	0
Premium on Bonds Payable
March 31	3,000	Balance, Jan 1	3,000
		Balance, Dec 31	0
Preferred Stock
		Balance, Jan 1	440,000
		June 1	55,000
		Balance, Dec 31	495,000
Common Stock
		Balance, Jan 1	160,000
		Mar 31	22,500
		Nov 21	10,000
		Balance, Dec 31	192,500
Paid-in Capital in Excess of Par Value : Preferred Stock
		Balance, Jan 1	200,000
		June 1	5,000
		Balance, Dec 31	205,000
Paid-in Capital in Excess of Par Value: Common Stock
		Balance, Jan 1	800,000
		Mar 31	70,500
		Nov 21	105,000
		Balance, Dec 31	975,500
Treasury Stock
Sep 1	200,000	Dec 28	20,000
Balance, Dec 31	180,000
Paid-in Capital : Treasury Stock
		Dec 28	4,000
		Balance, Dec 31	4,000
Retained Earnings
		Balance, Jan 1	550,000
		Dec 31	107,000
		Balance, Dec 31	657,000