Question

Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 370,000 shares of $10 par common stock and 65,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Inc: 1. Issued 22,000 shares of common stock for $15 per share. 2. Issued 14,000 shares of the class A preferred stock for $30 per share. 3. Issued 57,000 shares of common stock for $18 per share. Required: Prepare the stockholders' equity section of the balance sheet immediately after these transactions. EASTPORT INC. Balance Sheet (partial) For the Year Ended Year 1 Stockholders' Equity Preferred stock Paid-in capital in excess of SV, PS Paid-in capital in excess of par, CS Total Paid-In Capital Retained earnings Total stockholders' equity

Answer 1

Joution 1768000 particulars Common stock - authorised 370000 shares of 10 par 13700000 Common stock - Issued $9000 shares of topar 90000 [ (22000 +5:1000) X10] Pald in capital in excess - common stock J 110000 + 368000] 478000 Class A preferred Stock - authore sed 65000 shares Started Value 25 I 162 preferred stock - Issued 14000 shares at as stated value Pald in capital in excess - preferred stock (14000 x 5] 70000 Total shareholder's equity 1625000 350000 420000 1688000