Question

E13-24 Journalizing issuance of stock and preparing the stockholders' equity section of the balance sheet The charter of Evergreen Corporation authorizes the issuance of 900 shares of preferred stock and 1,400 shares of common stock. During a two-month period, Evergreen completed these stock-issuance transactions: Mar. 23 Issued 230 shares of $3 par value common stock for cash of $15 per share. Apr. 12 Received inventory with a market value of $27,000 and equipment with a market value of $19,000 for 320 shares of the $3 par value common stock. 17 Issued 900 shares of 5%, $20 par value preferred stock for $20 per share. Requirements 1. Record the transactions in the general journal. 2. Prepare the stockholders' equity section of the Evergreen balance sheet as of April 30, 2018, for the transactions given in this exercise. Retained Earnings has a balance of $73,000 at April 30, 2018.

Answer 1

March 23rd a Debit credit Cash (Bank $3450 common stock Acbitional paid in capital - commun stocke $690 $2760 Apr 12 Number of shares - 320 Shares = Amout payable - Share price 87000 + 19000 etaare price 143.75 a share price = Inventory $ 27000 Equipment $19000 common stock additional paid in capital-common stock $ 960 $450uo April 17th $18000 cash / Bank 51. Preferred stock $18000.

stockholder's Equity Section as of 30th April 2018. Comm stock paid in Capital Additional paid in Capital $1650 $ 47800 od $18000 Preferred stock paid in capital Retained Earnings Total stockholder's 20 S73000 $ 140450