Finlay, Inc., issued 4,000 shares of $50 par value preferred stock at $119 per share and 6,000 shares of no-par value common stock at $18 per share. The common stock has no stated value. All issuances were for cash. a. Determine the financial statement effect of the share issuances (preferred and common). Balance Sheet               Income Statement         Assets = Liabilities + Equity       Revenues - Expenses = Net Income Answer     Answer     Answer         Answer     Answer     Answer   b. Determine the financial statement effect of the issuance of the common stock assuming that it had a stated value of $5 per share. Balance Sheet               Income Statement         Assets = Liabilities + Equity       Revenues - Expenses = Net Income Answer     Answer     Answer         Answer     Answer     Answer   c. Determine the financial statement effect of the issuance of the common stock assuming that it had a par value of $1 per share. Balance Sheet               Income Statement         Assets = Liabilities + Equity       Revenues - Expenses = Net Income Answer     Answer     Answer         Answer     Answer     Answer

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Share Issuances for Cash

Finlay, Inc., issued 4,000 shares of $50 par value preferred stock at $119 per share and 6,000 shares
of no-par value common stock at $18 per share. The common stock has no stated value. All issuances were for cash.

a. Determine the financial statement effect of the share issuances (preferred and common).

Balance Sheet               Income Statement        
Assets = Liabilities + Equity       Revenues - Expenses = Net Income
Answer
 
  Answer
 
  Answer
 
      Answer
 
  Answer
 
  Answer
 


b. Determine the financial statement effect of the issuance of the common stock assuming that it had a stated value of $5 per share.

Balance Sheet               Income Statement        
Assets = Liabilities + Equity       Revenues - Expenses = Net Income
Answer
 
  Answer
 
  Answer
 
      Answer
 
  Answer
 
  Answer
 


c. Determine the financial statement effect of the issuance of the common stock assuming that it had a par value of $1 per share.

Balance Sheet               Income Statement        
Assets = Liabilities + Equity       Revenues - Expenses = Net Income
Answer
 
  Answer
 
  Answer
 
      Answer
 
  Answer
 
  Answer
 
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