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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 5,000 shares of $10 par value common stock for $60,000 cash. 2. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has a $2 per share stated value. 3. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has no stated value. 4. A corporation issued 1,250 shares of $75 par value preferred stock for $143,750 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. Cash NN 44 Assets (+) increase. 60,000 = Liabilities Equity Common Stock, $10 Par Value (+) increase 50,000 Paid-In Capital in Excess of Par Value, Common Stock (+) increase 10,000 Common Stock, $2 stated value (+) increase +Common Stock, No-Par Value (+) increase Cash (+) increase = + Preferred Stock, $75 Par Value (+) increase Paid-In Capital in Excess of Par Value, Preferred Stock (+) increase

! Required information [The following information applies to the questions displayed below.] Following are the issuances of stock transactions. 1. A corporation issued 5,000 shares of $10 par value common stock for $60,000 cash. 2. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has a $2 per share stated value. 3. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has no stated value. 4. A corporation issued 1,250 shares of $75 par value preferred stock for $143,750 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. Cash NN 44 Assets (+) increase. 60,000 = Liabilities Equity Common Stock, $10 Par Value (+) increase 50,000 Paid-In Capital in Excess of Par Value, Common Stock (+) increase 10,000 Common Stock, $2 stated value (+) increase +Common Stock, No-Par Value (+) increase Cash (+) increase = + Preferred Stock, $75 Par Value (+) increase Paid-In Capital in Excess of Par Value, Preferred Stock (+) increase

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 5MCQ
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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 5,000 shares of $10 par value common stock for $60,000 cash. 2. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has a $2 per share stated value. 3. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has no stated value. 4. A corporation issued 1,250 shares of $75 par value preferred stock for $143,750 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. Cash NN 44 Assets (+) increase. 60,000 = Liabilities Equity Common Stock, $10 Par Value (+) increase 50,000 Paid-In Capital in Excess of Par Value, Common Stock (+) increase 10,000 Common Stock, $2 stated value (+) increase +Common Stock, No-Par Value (+) increase Cash (+) increase = + Preferred Stock, $75 Par Value (+) increase Paid-In Capital in Excess of Par Value, Preferred Stock (+) increase
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 5,000 shares of $10 par value common stock for $60,000 cash. 2. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has a $2 per share stated value. 3. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has no stated value. 4. A corporation issued 1,250 shares of $75 par value preferred stock for $143,750 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. Cash NN 44 Assets (+) increase. 60,000 = Liabilities Equity Common Stock, $10 Par Value (+) increase 50,000 Paid-In Capital in Excess of Par Value, Common Stock (+) increase 10,000 Common Stock, $2 stated value (+) increase +Common Stock, No-Par Value (+) increase Cash (+) increase = + Preferred Stock, $75 Par Value (+) increase Paid-In Capital in Excess of Par Value, Preferred Stock (+) increase
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