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anderson corporation was organized early in 2000 the articles of incorporation autho 730862

Anderson Corporation was organized early in 2000. The articles of incorporation authorize

30,000 shares of $100 par value, 10% cumulative preferred stock and 600,000 shares of $5

par value common stock. The following transactions affecting stockholders’ equity were

completed during the first year:

1. Issued 50 shares of preferred stock at par value as payment for legal services.

2. Issued 4,000 shares of common stock at $20 per share and 800 shares of preferred stock

at par.

3. Exchanged 10,000 shares of common stock for land with an appraised value of $120,000

and a building with an appraised value of $90,000

4. Declared the required cash dividend on preferred stock and a $2 per share dividend on

common stock.

5. Closed the $200,000 credit balance in the Income Summary Account.

Required

a. Prepare journal entries to record these transactions.

b. Prepare the stockholders’ equity section of the balance sheet.

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