Answer:
Sheffield Corporation
Journal Entries
Date Description DR CR
Jan 11 Cash 292,500
Common stock 195,000
Paid in Capital for common stock 97,500
<em>Being the amount received on issue of </em>
<em> </em>
Feb 11 Equipment 53,300
Factory Building 152,000
Land 295,000
Prefereed stock 410,000
Paid -in -capital for Preferred stock 90,300
July 29 Treasury stock 25,600
Cash 25,600
Being the payment of own share purchased
Aug 10 Cash 22,400
Retained Earnings 3,200
Treasury stock 25,600
Dec 31 Retained earnings 10,025
Dividend(0.35*19500) 6,825
Treasury stock 3,200
Dec 31 Net Income ( Income Summary) 158,400
Retained Earnings 158,400
Balance sheet as at Dec 31
Equity
Common stock at $10 par value $195,000
7% Preferred Stock 410,000
Paid in capital for common stock 97,500
Paid in capital for Preferred stock 90,300
Retained Earnings ( 158,400-6825-3200) <u> 148,375</u>
<u> 941,175</u>
Explanation:
