Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 320,000 shares of $10 par common stock and 40,000 sharesof 5 percent cumulative class A preferred stock. The class A stock had a stated value of $30 per share. The following stocktransactions pertain to Eastport Inc.:1. Issued 20,000 shares of common stock for $15 per share.2. Issued 9,000 shares of the class A preferred stock for $35 per share.3. Issued 59,000 shares of common stock for $18 per share.RequiredPrepare the stockholders' equity section of the balance sheet immediately after these transactions have been recognized.EASTPORT INC.Balance Sheet (partial)For the Year Ended Year 1Stockholders' EquityCommon stock$ 4,800,000Paid-in capital in excess of par, CS320,000,000Preferred stock150,000

Common shares (Transaction 1)=Number of shares×Par value=20,000×$10=$200,000

Answered: Eastport Inc. was organized on June 5,…

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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