1. 1. A corporation issued 3,000 shares of $10 par value common stock for $36,000 cash. 2. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $59,500. The stock has a $4 per share stated value. Analyze each transaction from issuances of stock by showing its effect on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. 1. 2. 2. 3. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $59,500. The stock has no stated value. 4. A corporation issued 750 shares of $75 par value preferred stock for $115,750 cash. Cash 2. 3. 3. 4. Cash 4. Assets > (+) increase (+) increase 36,000 ✓ 115,750 = |= = = = = = = Answer is complete but not entirely correct. Liabilities + + + + + + + Equity Common Stock, $10 Par Value Paid-In Capital in Excess of Par Value, Common Stock Organization Expenses Common Stock, $4 stated value Paid-In Capital in Excess of Stated Value, Common Stock Organization Expenses + Common Stock, No-Par Value + Preferred Stock, $75 Par Value Paid-In Capital in Excess of Par Value, Preferred Stock (+) increase (+) increase 6,000✔ (-) decrease ✔✔ (59,500)✔ (+) increase 6,000 X ✓ › › ›› (+) increase (-) decrease ✓(+) increase (+) increase ✓ (+) increase ✓ 30,000✔ ✓ 53,500✔ (59,500)✔ 59,500 56,250✔ 59,500✔
1. 1. A corporation issued 3,000 shares of $10 par value common stock for $36,000 cash. 2. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $59,500. The stock has a $4 per share stated value. Analyze each transaction from issuances of stock by showing its effect on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. 1. 2. 2. 3. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $59,500. The stock has no stated value. 4. A corporation issued 750 shares of $75 par value preferred stock for $115,750 cash. Cash 2. 3. 3. 4. Cash 4. Assets > (+) increase (+) increase 36,000 ✓ 115,750 = |= = = = = = = Answer is complete but not entirely correct. Liabilities + + + + + + + Equity Common Stock, $10 Par Value Paid-In Capital in Excess of Par Value, Common Stock Organization Expenses Common Stock, $4 stated value Paid-In Capital in Excess of Stated Value, Common Stock Organization Expenses + Common Stock, No-Par Value + Preferred Stock, $75 Par Value Paid-In Capital in Excess of Par Value, Preferred Stock (+) increase (+) increase 6,000✔ (-) decrease ✔✔ (59,500)✔ (+) increase 6,000 X ✓ › › ›› (+) increase (-) decrease ✓(+) increase (+) increase ✓ (+) increase ✓ 30,000✔ ✓ 53,500✔ (59,500)✔ 59,500 56,250✔ 59,500✔
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 8MC: The total amount of cash and other assets received by a corporation from the stockholders in...
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I'm not sure how it's wrong, 1500 shares times $4 per value share is 6000 no? Thank you ahead of time.
![1.
Analyze each transaction from issuances of stock by showing its effect on the accounting equation specifically, identify the
accounts and amounts (including + or -) for each transaction.
1.
2.
2.
2.
3.
3.
4.
1. A corporation issued 3,000 shares of $10 par value common stock for $36,000 cash.
2. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $59,500. The stock has a $4 per share stated value.
4.
3. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $59,500. The stock has no stated value.
4. A corporation issued 750 shares of $75 par value preferred stock for $115,750 cash.
Cash
Cash
Assets
(+) increase
(+) increase
36,000
115,750
X Answer is complete but not entirely correct.
Liabilities
+
+
Common Stock, $10 Par Value
Paid-In Capital in Excess of Par
Value, Common Stock
Organization Expenses
Common Stock, $4 stated value
Paid-In Capital in Excess of Stated
Value, Common Stock
Organization Expenses
Common Stock, No-Par Value
+ Preferred Stock, $75 Par Value
Paid-In Capital in Excess of Par
Value, Preferred Stock
+
+
+
+
+
Equity
+
(+) increase
(+) increase
(-) decrease
(+) increase
(+) increase
(-) decrease
(+) increase
(+) increase
(+) increase
30,000
6,000
(59,500)
6,000 X
53,500
(59,500)
59,500
56,250
59,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcbaaf3a5-97a4-44d4-82b4-c685cbb2fa1a%2F1d003641-a6db-4ad2-84ef-a1a57bfaed05%2F9o9tfn_processed.png&w=3840&q=75)
Transcribed Image Text:1.
Analyze each transaction from issuances of stock by showing its effect on the accounting equation specifically, identify the
accounts and amounts (including + or -) for each transaction.
1.
2.
2.
2.
3.
3.
4.
1. A corporation issued 3,000 shares of $10 par value common stock for $36,000 cash.
2. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $59,500. The stock has a $4 per share stated value.
4.
3. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $59,500. The stock has no stated value.
4. A corporation issued 750 shares of $75 par value preferred stock for $115,750 cash.
Cash
Cash
Assets
(+) increase
(+) increase
36,000
115,750
X Answer is complete but not entirely correct.
Liabilities
+
+
Common Stock, $10 Par Value
Paid-In Capital in Excess of Par
Value, Common Stock
Organization Expenses
Common Stock, $4 stated value
Paid-In Capital in Excess of Stated
Value, Common Stock
Organization Expenses
Common Stock, No-Par Value
+ Preferred Stock, $75 Par Value
Paid-In Capital in Excess of Par
Value, Preferred Stock
+
+
+
+
+
Equity
+
(+) increase
(+) increase
(-) decrease
(+) increase
(+) increase
(-) decrease
(+) increase
(+) increase
(+) increase
30,000
6,000
(59,500)
6,000 X
53,500
(59,500)
59,500
56,250
59,500
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