issued 9,000 shares of $5 par value common stock for $54,000 cash. issued 4,500 shares of no-par common stock to its promoters in exchange for their eff 34,500. The stock has a $1 per share stated value.
issued 9,000 shares of $5 par value common stock for $54,000 cash. issued 4,500 shares of no-par common stock to its promoters in exchange for their eff 34,500. The stock has a $1 per share stated value.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A3
![1.
Analyze each transaction from issuances of stock by showing its effect on the accounting equation-specifically, identify the accounts
and amounts (including + or -) for each transaction.
1.
2.
2.
2.
3.
3.
4.
Required information
[The following information applies to the questions displayed below.]
Following are the issuances of stock transactions.
1. A corporation issued 9,000 shares of $5 par value common stock for $54,000 cash.
2. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $34,500. The stock has a $1 per share stated value.
4.
3. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $34,500. The stock has no stated value.
4. A corporation issued 2,250 shares of $25 par value preferred stock for $90,750 cash.
Cash
Cash
Assets
✓(+) increase
>
(+) increase
54,000 =
=
=
=
=
=
90,750 =
=
Liabilities
Answer is not complete.
+
+
+
+
+
+
Equity
Common Stock, $5 Par Value
Paid-In Capital in Excess of Par
Value, Common Stock
Common Stock, $1 stated value
Paid-In Capital in Excess of Stated
Value, Common Stock
Common Stock, No-Par Value
Paid-In Capital in Excess of Par
Value, Preferred Stock
(+) increase
(+) increase
(+) increase
(+) increase
(+) increase
(+) increase
✓
✓
45,000✔
9,000
4,500✔
30,000
34.500✓
56,250 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F90d618d4-6195-4b27-948e-6843fe2f3748%2F918888d2-2736-4e3f-9fad-97712c502812%2Fgc7ag7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1.
Analyze each transaction from issuances of stock by showing its effect on the accounting equation-specifically, identify the accounts
and amounts (including + or -) for each transaction.
1.
2.
2.
2.
3.
3.
4.
Required information
[The following information applies to the questions displayed below.]
Following are the issuances of stock transactions.
1. A corporation issued 9,000 shares of $5 par value common stock for $54,000 cash.
2. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $34,500. The stock has a $1 per share stated value.
4.
3. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $34,500. The stock has no stated value.
4. A corporation issued 2,250 shares of $25 par value preferred stock for $90,750 cash.
Cash
Cash
Assets
✓(+) increase
>
(+) increase
54,000 =
=
=
=
=
=
90,750 =
=
Liabilities
Answer is not complete.
+
+
+
+
+
+
Equity
Common Stock, $5 Par Value
Paid-In Capital in Excess of Par
Value, Common Stock
Common Stock, $1 stated value
Paid-In Capital in Excess of Stated
Value, Common Stock
Common Stock, No-Par Value
Paid-In Capital in Excess of Par
Value, Preferred Stock
(+) increase
(+) increase
(+) increase
(+) increase
(+) increase
(+) increase
✓
✓
45,000✔
9,000
4,500✔
30,000
34.500✓
56,250 X
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