Question

This Question: 4 pts 10 of 11 (3 complete) This Quiz: 40 pls possible Question Help Solve for the missing amounts in the partial balance sheet using the additional information provided below. (Click on the icon to view the partial balance sheet.) All of the shares were issued at one time. Common shares were sold for $4.25 per share and preferred shares were sold for $625 each. No dividends were paid for the year. Fill the missing amounts into the table below. (Enter the deficit with a minus sign or parentheses. Round your answers to the nearest whole dollar.) Shareholders' Equity Contributed Capital Preferred shares, $250, issued, outstanding S 243,750 Common shares, 185,000 issued and outstanding Total contributed capital Deficit S Total Shareholders' Equity 525,000

Answer 1

Solution :

Amount($) Shareholders Equity Particulars Contributed Capital Preferred Shares, $2.5, 39000 Issued, Outstanding Common shares, 185000 issued and outstanding Total Contributed Capital Deficit Total Shareholder's Equity $243,750 $786250 $1030000 $-505,000 $525,000

Working Notes :

1.Preferred shares issued will be =$243750/$6.25each=39000 shares

2.Common Shares value =185000 shares*$4.25each=$786250

3.Deficit is the difference between Total Shareholders Equity and Total Contributed Capital that is

=$525000-1030000=($505000)