The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. Issued 20% of authorised shares of class A common stock. Stock has par value of $30.00 per share and was issued at $40.00 per share. Issued 20% of authorised shares of no-par class B stock at $38.00. Issued 40% of authorised shares of preferred stock at par value $110.00. Exchanged 50% of authorised shares of class A common stock for Office Furniture and Equipment with an appraised value of $ 4,000,000.00 and Motor Truck with an appraised value of $10,000,000.00. Earned Net income 1,800,000.00. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders. Requirement: Prepare the company’s Stockholders Equity section of the balance sheet at December 31, 2020. The following information must be clearly stated/shown: Information on par or par values for all classes of shares which must be shown separately, the number of shares authorized and issued where necessary, the sub total for the total paid in capital, retained earnings and total stockholders’ equity.
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020.
In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative
Issued 20% of authorised shares of class A common stock. Stock has par value of $30.00 per share and was issued at $40.00 per share.
Issued 20% of authorised shares of no-par class B stock at $38.00.
Issued 40% of authorised shares of preferred stock at par value $110.00.
Exchanged 50% of authorised shares of class A common stock for Office Furniture and Equipment with an appraised value of $ 4,000,000.00 and Motor Truck with an appraised value of $10,000,000.00.
Earned Net income 1,800,000.00.
Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders.
Requirement:
Prepare the company’s
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