Journalize and post transactions, prepare stockholders equity - Jajoo Corp.

The stockholders equity accounts of Jajoo corp on Jan.1,2006 were as follows.
Preferred Stock (10%,$100 par noncumulative, 5,000 shares authorized)=$300,000
Common Stock ($5 stated value, 300,000 shares authorized)=$1,000,000
Paid in capital in excess of par value preferred stock=$20,000
Paid in capital in excess of stated value common stock=$425,000
Retained Earnings Treasury stock-common($5,000 shares)=$40,000

During 2006, the corporation had the following transactions and events pertaining to its stockholders equity.

Feb.1 Issued 3,000 shares of common stock for $25,000.
March 20 Purchased 1,500 additional shares of common treasury stock at $8 per share
June 14 Sold 4,000 shares of treasury stock common for $36,000
Sept 3 Issued 2,000 shares of common stock for a patent valued at $17,000
Dec 31 Determined that net income for the year was $340,000.

Instructions:
a. Journalize the transactions and the closing entry for net income.
b. enter the beginning balances in the accounts and post the journal entries to the stockholders equity accounts.
c. Prepare a stockholders equity section at Dec 31, 2006
d. Compute the book value per share of common stock at Dec 31, 2006(round to two decimals)

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/accounting/journalize-and-post-transactions-prepare-stockholders-equity-jajoo-corp-3d3o