Harmsen Maintenance Corporation was organized in early 201
Question and Solution
Harmsen Maintenance Corporation was organized in early 2012 with 60,000 shares of no-par common stock authorized. During 2012, the following transactions occurred: a. Issued 31,000 shares of stock at $24 per share. b. Issued another 3,900 shares of stock at $28 per share. c. Issued 3,000 shares for a building appraised at $90,000. d. Declared dividends of $1.50 per share. e. Earned net income of $187,000 for the year, including $405,000 of revenues and $218,000 of expenses, and closed these accounts. f. Closed the dividends accounts. Given this information: 1. Journalize the transactions. 2. Present the stockholders’ equity section of the balance sheet as it would appear on December 31, 2012.