Required information [The following information applies to the questions displayed below] Following are the issuances of stock transactions. 1. A corporation issued 2,000 shares of $20 par value common stock for $48,000 cash. 2. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $32,500. The stock has a $3 per share stated value. 3. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $32,500. The stock has no stated value. 4. A corporation issued 500 shares of $100 par value preferred stock for $82,500 cash. 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.
Required information [The following information applies to the questions displayed below] Following are the issuances of stock transactions. 1. A corporation issued 2,000 shares of $20 par value common stock for $48,000 cash. 2. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $32,500. The stock has a $3 per share stated value. 3. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $32,500. The stock has no stated value. 4. A corporation issued 500 shares of $100 par value preferred stock for $82,500 cash. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Following are the issuances of stock transactions.
1. A corporation issued 2,000 shares of $20 par value common stock for $48,000 cash.
2. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $32,500. The stock has a $3 per share stated value.
3. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $32,500. The stock has no stated value.
4. A corporation issued 500 shares of $100 par value preferred stock for $82,500 cash.
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.
Cash
1.
2.
2.
2.
3.
3.
4.
st
4.
Assets
=
(+) increase
480,000
=
=
=
Liabilities
+ Common Stock, $20 Par V
+
+
+
+
+
+
+](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d3182a3-6690-40be-b718-41a40b1b747e%2F23646ee3-124e-476f-9ce5-35793d4e547b%2Fazczepx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Following are the issuances of stock transactions.
1. A corporation issued 2,000 shares of $20 par value common stock for $48,000 cash.
2. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $32,500. The stock has a $3 per share stated value.
3. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated
to be worth $32,500. The stock has no stated value.
4. A corporation issued 500 shares of $100 par value preferred stock for $82,500 cash.
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.
Cash
1.
2.
2.
2.
3.
3.
4.
st
4.
Assets
=
(+) increase
480,000
=
=
=
Liabilities
+ Common Stock, $20 Par V
+
+
+
+
+
+
+
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