Analyzing and Identifying Financial Statement Effects of Stock Issuances During the current year, Austin Company. (a) issues 16.000 shares of $50 par value preferred stock at $84 cash per share and (b) issues 38.000 shares of $1 par value common stock at $10 cash per share. Indicate the financial statement effects of these two issuances using the financial statement effects template. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction (a) Issuance of preferred stock (b) Issuance of common stock Cash Asset Please answer all parts of the Cash Check : Additional Paid-in Capital-CS Additional Paid-in Capital-PS Common Stock Preferred Stock Retained Earnings ● N/A N/A Noncash Assets 0- ● 0 0. ● N/A N/A Balance Sheet Liabilities 0 # 0 • Contrib. Capital Preferred Stock Common Stock 0 : 0 ● N/A N/A Earned Capital 0 • 0 ● N/A Revenues 0 • Income Statement 0- • N/A N/A Expenses Net ▪ Income 0- ● 0 + 0 0
Analyzing and Identifying Financial Statement Effects of Stock Issuances During the current year, Austin Company. (a) issues 16.000 shares of $50 par value preferred stock at $84 cash per share and (b) issues 38.000 shares of $1 par value common stock at $10 cash per share. Indicate the financial statement effects of these two issuances using the financial statement effects template. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction (a) Issuance of preferred stock (b) Issuance of common stock Cash Asset Please answer all parts of the Cash Check : Additional Paid-in Capital-CS Additional Paid-in Capital-PS Common Stock Preferred Stock Retained Earnings ● N/A N/A Noncash Assets 0- ● 0 0. ● N/A N/A Balance Sheet Liabilities 0 # 0 • Contrib. Capital Preferred Stock Common Stock 0 : 0 ● N/A N/A Earned Capital 0 • 0 ● N/A Revenues 0 • Income Statement 0- • N/A N/A Expenses Net ▪ Income 0- ● 0 + 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Analyzing and Identifying Financial Statement Effects of Stock Issuances
During the current year, Austin Company, (a) issues 16,000 shares of $50 par value preferred stock at $84 cash per share and (b) issues 38,000 shares of $1 par value common stock at $10 cash per share. Indicate the financial statement effects of these two issuances using the
financial statement effects template.
Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.
Transaction
(a) Issuance of preferred stock
(b) Issuance of common stock
Please answer all parts of the
Check
Cash Asset
♦
Common Stock
Preferred Stock
Retained Earnings
N/A
◆
Additional Paid-in Capital-CS
Additional Paid-in Capital-PS
Cash
N/A
N/A
Noncash Assets
0
◆
0 =
N/A
N/A
Balance Sheet
Liabilities
+
0
0
+
Contrib. Capital
Preferred Stock
Common Stock
0
+
0
◆
N/A
N/A
Earned Capital
◆
0
0
N/A
Revenues
0
♦
0
Income Statement
N/A
N/A
Expenses
◆
0 =
0 =
◆
Net
Income
0
0
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