Butler Corporation was organized in 2009 to operate a financial consulting business. The charter authorized the following capital stock: common stock, par value $10 per share, 11,500 shares. During the first year, the following selected transactions were completed:
a. Sold and issued 5,600 shares of common stock for cash at $20 per share.
b. Sold and issued 1,000 shares of common stock for cash at $25 per share.
c. At year-end, the accounts reflected a $6,000 loss. Because a loss was incurred, no income tax expense was recorded.
1. Give the journal entry required for each of these transactions.
2. Prepare the stockholders’ equity section as it should be reported on the year-end balance sheet.
3. Can the company pay dividends at this time? Explain.
Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...