Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 380,000 shares of $8 par common stock and 70,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Incorporated: 1. Issued 21,000 shares of common stock for $13 per share. 2. Issued 7,000 shares of the class A preferred stock for $30 per share. 3. Issued 46,000 shares of common stock for $16 per share. Required a. Prepare general journal entries for these transactions. b. Prepare the stockholders' equity section of the balance sheet immediately after these transactions.
Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 380,000 shares of $8 par common stock and 70,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Incorporated: 1. Issued 21,000 shares of common stock for $13 per share. 2. Issued 7,000 shares of the class A preferred stock for $30 per share. 3. Issued 46,000 shares of common stock for $16 per share. Required a. Prepare general journal entries for these transactions. b. Prepare the stockholders' equity section of the balance sheet immediately after these transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 11-9A (Algo) Recording and reporting common and preferred stock transactions LO 11-4
Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 380,000 shares of $8 par common stock and 70,000
shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock
transactions pertain to Eastport Incorporated:
1. Issued 21,000 shares of common stock for $13 per share.
2. Issued 7,000 shares of the class A preferred stock for $30 per share.
3. Issued 46,000 shares of common stock for $16 per share.
Required
a. Prepare general journal entries for these transactions.
b. Prepare the stockholders' equity section of the balance sheet immediately after these transactions.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare general journal entries for these transactions. (If no entry is required for a transaction/event, select "No journal entry required"
in the first account field.)
View transaction list
Journal entry worksheet
A
Event
1
Issued 21,000 shares of common stock for $13 per share. Record the
transaction.
B
Note: Enter debits before credits.
Cash
с
Record entry
General Journal
Common stock
Paid-in capital in excess of par value-common stock
Clear entry
< Required A
Debit
273,000
View general journal
Required B >
>
Credit
Transcribed Image Text:Required A
Required B
Prepare the stockholders' equity section of the balance sheet immediately after these transactions.
Stockholders' equity
Preferred stock
Common stock
Paid-in capital in excess of stated value-preferred stock
Paid-in capital in excess of par value-common stock
Appropriated retained earnings
Total stockholders' equity
< Required A
$
0
Required B >
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