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the following selected items and amounts were taken from the balance sheet of quale 4244596

The following selected items and amounts were taken from the balance sheet of Quale Company as of December 31, 2012:Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 93,000Property, plant, and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850,000Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000Preferred stock (7%, $100 par, noncumulative, 10,000 sharesauthorized, 5,000 shares issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000Common stock ($10 par, 100,000 shares authorized,80,000 shares issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000Paid-in capital in excess of par, preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000Paid-in capital in excess of par, common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,000Paid-in capital, treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,000Required:For each of parts (1) to (5), (a) prepare the necessary journal entry (or entries) to record each transaction, and (b) calculate the amount that would appear on the December 31, 2012, balance sheet as a consequence of this transaction only for the account given. (Note: In your answer to each part of this problem, consider this to be the only transaction that took place during 2012.)1. Quale issued 200 shares of common stock in exchange for cash of $4,000.a. Entryb. Paid-in Capital in Excess of Par, Common Stock2. Quale issued 200 shares of preferred stock at a price of $102 per share.a. Entryb. Paid-in Capital in Excess of Par, Preferred Stock3. Quale issued 500 shares of common stock in exchange for a building. The common stock is not actively traded, but the building was recently appraised at $11,000.a. Entryb. Property, Plant, and Equipment4. Quale reacquired 1,000 shares of common stock from a stockholder for $23,000 and subsequently reissued the shares to a different investor for $21,500.a. Entriesb. Paid-In Capital, Treasury Stock5. The board of directors declared dividends of $75,000. This amount includes the current year dividend preference on preferred stock, with the remainder to be paid to common shareholders.a. Entryb. Retained EarningsView Solution:
The following selected items and amounts were taken from the

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