The Charter of the BRHC Corporation Authorizes the Issuance of 3,000,000

question 26

Essay

The charter of the BRHC Corporation authorizes the issuance of 3,000,000 shares of no-par common stock and 1,000,000 shares of 10%,$100 par cumulative preferred stock.Events affecting the stockholders' equity section during the first year of operations (2010)are listed below.
(1.)300,000 shares of common stock were issued for $20 per share.
(2.)25,000 shares of preferred stock were sold at $102 per share.
(3.)A building with a fair market value of $820,000 was acquired for a cash payment of $300,000 and 26,000 shares of common stock.
(4.)30,000 shares of common stock were issued for $690,000 in cash.
(5.)Dividends for the preferred stock were declared and common stock dividend was declared for $1 per share.
Required:
(A.)Record the transaction described above.
(B.)Prepare the stockholders' equity section of BRHC assuming that the corporation generated $1,200,000 of income in the first year.

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Definitions:

X-ray Examination

A diagnostic procedure using X-rays, a form of electromagnetic radiation, to view internal structures of the body.

Holter Monitor

A portable device for continuously monitoring the electrical activity of the heart for 24 hours or longer.

Cardiology Patient

An individual receiving medical attention for conditions related to the heart and its functioning.

Stress Test

A medical test that assesses how the heart works under physical stress, often involving exercise or medication that mimics exercise on the heart.