Solution libraryQuestion: 159917
Question(s) / Instruction(s):
midwest corp completed the following tranactions in 2012 the first year or operation
1. issued 20,000 shares of 10$ par common stock at par.
2.issued 2,000 shares of 30$ stated value preferred stock at 32$ per share
3.purchased 500 shares of common stock as tresuary stock for 15$ per share.
4.declared a five percent dividend on preferrred stock.
5.sold 300 shares of tresuary stock for 18$ per share.
6.paid the cash dividend on preferred stock that was declared in event four
7. earned cash service revenue of 75,000 and incurred cash operating expenses of 42,000
8.appropriated 6,000 of retained earnings
a. organize the transaction in accounts under an accounting equation
b.prepare the stockholders equity section of the balance sheer as of december 31 2012
the following transactions apply to artesia co for 2012 its first year of operations.
1. recieved 40,000 cash from the issue of a short term note with a five percent interest rate and a one year maturity. the note was issued on april 1 2012.
2.recieved 120,000 cash plus applicable sales tax from performing services. the services are subject to a sales tax rate of six percent.
3. paid 72,000 cash for other operating expenses during the year.
4.paid the sales tax due on 100,000 of the services revenue for the year sales tax balance on the balance of the revenue is not due until 2013.
5.recognized the accured interest at december 31, 2012
the following transactions apply to artesia co for 2013
1. paid the balance of the sales tax due for 2012
2.recieved 145,000 cash plus applicable sales tax from performing services the services are subject to a sales tax rate of 6 percent.
3. repaied the principal of the noteand applicable interest on april 1 2013
4. paid 85,000 of other operating expenses during the year
5.paid the sales tax due on 120,000 of the services revenue the sales tax on the balance of the revenue is not due until 2014
a. oraganize the transaction data in accounts under an accounting equation
b.prepare an income statement, a statement of changes in stockholders equity a balance sheet and a statement of cash flow for 2012 and 2013.