Question

Graded Homework 0 Sarved Help Save Exercise 8-7 Recording and reporting common and preferred stock transactions LO 8-3 Eastport Inc. was organized on June 5, 2018. It was authorized to issue 350,000 shares of $12 par common stock and 40,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $20 per share. The following stock transactions pertain to Eastport Inc.: 1. Issued 23,000 shares of common stock for $17 per share. 2. Issued 9,000 shares of the class A preferred stock for $25 per share. 3. Issued 52,000 shares of common stock for $20 per share. Required: Prepare the stockholders' equity section of the balance sheet immediately after these transactions have been recognized. EASTPORT INC. Balance Sheet (partial) For the Year Ended 2018 Stockholders' Equity Prev 1 of 9 Next >

Answer 1

Prepare stockholders' equity section of balance sheet as follows: 5 A B Eastport Inc. Balance Sheet (Partial) For the year Ended 2018 4 Stockholders' Equity Preferred stock $ 1,80,000 Common stock $ 9,00,000 Paid-in capital in excess of SV.PS $ 45,000 8 Paid-in capital excess of par, CS S 5,31,000 $ 16,56,000 10 Total Paid-In Capital $16,56,000 11 12 Total stockholders' equity $ 16,56,000 Calculations: A B Eastport Inc. Balance Sheet (Partial) For the year Ended 2018 4 Stockholders' Equity 5 Preferred stock =9000*20 6 Common stock =(23000+52000)*12 7 Paid-in capital in excess of SV.PS -9000"(25-20) 8 Paid-in capital excess of par, CS =(23000*(17-12)+(52000*(20-12) =SUM(B5:B8) 10 Total Paid-In Capital =B9 11 12 Total stockholders' equity =B10