Barton Corporation began operations on January 1, 2014

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Barton Corporation began operations on January 1, 2014. The following transactions relating to stockholders' equity occurred in the first two years of the company's operations.

2014 Jan. 1Authorized the issuance of 2 million shares of $5 par value common stock and 100,000 shares of $100 par value, 10% cumulative, preferred stock.

Jan. 2 Issued 200,000 shares of common stock for $12 cash per share.

Jan. 3 Issued 100,000 shares of common stock in exchange for a building valued at $820,000 and merchandise inventory valued at $380,000.

Jan. 4 Paid $10,000 cash to the company's founders for organization activities. Jan. 5 Issued 12,000 shares of preferred stock for $110 cash per share.

2015

June4 Issued 100,000 shares of common stock for $15 cash per share.

Required 1. Prepare journal entries to record these transactions.

2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2014, and December 31, 2015, based on these transactions.

3.  table showing dividend allocations and dividends per share for 2014 and 2015 assuming Barton declares the following cash dividends: 2014, $50,000, and 2015, $300,000.

4. Prepare the January 2, 2014, journal entry for Barton's issuance of 200,000 shares of common stock for $12 cash per share assuming 1. Common stock is no-par stock without a stated value. 2. Common stock is no-par stock with a stated value of $10 per share.

PLANNING THE SOLUTION

· Record journal entries for the transactions for 2014 and 2015.

Determine the balances for the 2014 and 2015 equity accounts for the balance sheet

. · Prepare the contributed capital portion of the 2014 and 2015 balance sheets.

· A table similar to Exhibit 13.11 showing dividend allocations for 2014 and 2015. ·

Record the issuance of common stock under both specifications of no-par stock