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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✔

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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