Question - On January 5, 2017, Cheyenne Corporation received a charter granting the right to issue 5,100 shares of $100 par value, 9% cumulative and nonparticipating preferred stock, and 49,000 shares of $10 par value common stock. It then completed these transactions.
Jan. 11 Issued 21,800 shares of common stock at $17 per share.
Feb. 1 Issued to Sanchez Corp. 4,400 shares of preferred stock for the following assets: equipment with a fair value of $48,000; a factory building with a fair value of $147,000; and land with an appraised value of $254,000
July 29 Purchased 1,800 shares of common stock at $18 per share. (Use cost method.)
Aug. 10 Sold the 1,800 treasury shares at $15 per share.
Dec. 31 Declared a $0.45 per share cash dividend on the common stock and declared the preferred dividend.
Dec. 31 Closed the Income Summary account. There was a $188,300 net income
(a) Record the journal entries for the transactions listed above.
(B) Prepare stockholders equity sheet as of Dec. 31 2017.