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question lincolnpriest inc was organized in 2011 at december 31 2011 the lincolnprie 4293965

Question

LincolnPriest, Inc. was organized in 2011. At December 31, 2011, the LincolnPriest balance sheet reported the following stockholders' equity:

Lincoln-Priest, Inc.

Stockholders' Equity

December 31, 2011

Paid-in Capital:

Preferred stock, 7%, $40 par, 110,000 shares authorized, none issued $0

Common stock, $1 par, 520,000 shares authorized, 61,000 shares issued and outstanding $61,000

Paid-in capital in excess of par – common $41,000

Total paid-in capital $102,000

Retained earnings $29,000

Total stockholders' equity $131,000

Requirements

1.

During 2012, the company completed the following selected transactions. Journalize each transaction. Explanations are not required.

2.

1.

During 2012, the company completed the following selected transactions. Journalize each transaction. Explanations are not required.

 

a.Issued for cash 1,300 shares of preferred stock at par value.

 

b.Issued for cash 2,400 shares of common stock at a price of $5 per share

 

c.Net income for the year was $74,000, and the company declared no dividends. Make the closing entry for net income.

2.

Prepare the stockholders' equity section of the LincolnPriest balance sheet at December 31, 2012.

 

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