Uzi Company received a charter granting the right to issue

Question # 00005644 Posted By: expert-mustang Updated on: 12/20/2013 08:57 AM Due on: 12/20/2013
Subject Accounting Topic Accounting Tutorials:
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Complete the following exercise. Fill in the Excel spreadsheet provided via the link below to provide your answers to parts a, b, and c. Then paste the Excel data into a Word document on which you can also write the answer to part d.


Label each exercise or problem clearly. Use APA formatting and citation if needed.

Uzi Company received a charter granting the right to issue 200,000 shares of $1 par value common stock and 10,000 shares of 8% cumulative and nonparticipating, $50 par value preferred stock that is callable at $80 per share. Selected transactions are presented below.

Feb. 19 Issued 45,000 shares of common stock at par for cash.
22 Gave the corporation’s promoters 30,000 shares of common stock for their services in getting the corporation organized. The directors valued the services at $50,000.
Mar 30 Exchanged 100,000 shares of common stock for the following assets at fair market values: land, $25,000; building, $100,000; and machinery, $125,000.
Dec. 31 Closed the Income Summary account. A $25,000 loss was incurred.
Jan. 12 Issued 1,000 shares of preferred stock at $75 per share.
Dec. 15 The board of directors declared an 8% dividend on preferred shares and $0.10 per share on outstanding common shares, payable on January 31 to the January 17 stockholders of record.
31 Closed the Income Summary account. A $69,000 net income was earned.
Jan. 31 Paid the previously declared dividends.

Prepare general journal entries to record the selected transactions.
Prepare a stockholders’ equity section as of the close of business on December 31, 2012.
Determine the book value per preferred share and per common stock as of December 31, 2012.
Provide a rationale between 200 and 300 words in length for buying or not buying this stock based on the financial information presented.
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Tutorials for this Question
  1. Tutorial # 00005443 Posted By: expert-mustang Posted on: 12/20/2013 08:59 AM
    Puchased By: 2
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    $ 50,000 common stock $ 30,000 Additional paid in ...
    ACC_-_Uzi_Company_Solution.doc (101 KB)

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