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
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: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.12AMCP
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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 | |||||||||||
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| Assets | = | Liabilities | + | Equity | Revenues | - | Expenses | = | Net Income | |||
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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 | |||
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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 | |||
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