Finlay, Inc., issued 6,400 shares of $50 par value preferred stock at $34 per share and 9,600 shares of no-par value common stock at $5 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 Assets Income Statement Liabilities Equity Revenues Expenses = 265,600 0 265,600 ✔ 0 0 Net Income 0 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 + 48,000 0 Equity 48,000✓ Revenues Expenses = Net Income 0 0 0 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 Assets Liabilities + Equity 9,600 x 9,600 x Income Statement Revenues Expenses = Net Income 0 0 0
Finlay, Inc., issued 6,400 shares of $50 par value preferred stock at $34 per share and 9,600 shares of no-par value common stock at $5 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 Assets Income Statement Liabilities Equity Revenues Expenses = 265,600 0 265,600 ✔ 0 0 Net Income 0 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 + 48,000 0 Equity 48,000✓ Revenues Expenses = Net Income 0 0 0 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 Assets Liabilities + Equity 9,600 x 9,600 x Income Statement Revenues Expenses = Net Income 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A10
Show me the steps to solve part C:
Transcribed Image Text:Finlay, Inc., issued 6,400 shares of $50 par value preferred stock at $34 per share and 9,600 shares
of no-par value common stock at $5 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
Assets
Income Statement
Liabilities
Equity
Revenues
Expenses
=
265,600
0
265,600 ✔
0
0
Net Income
0
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
+
48,000
0
Equity
48,000✓
Revenues
Expenses
=
Net Income
0
0
0
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
Assets
Liabilities +
Equity
9,600 x
9,600 x
Income Statement
Revenues
Expenses
=
Net Income
0
0
0
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