Question

Preston Stores is authorized to issue 19,000 shares of common stock. During a two-month period, Preston co (Click the icon to view the transactions.) Read the requirements. raiu-in vapilar IT LACESS UI rar - LUITITIUIT May July 42,1 JU 23 Issued 2,000 shares of $2.50 par common stock for cash of $12.50 per share. 12 Received inventory with a market value of $12,000 and equipment with market value of $38,000 for 2,900 shares of the $2.50 par common stock. Requirement 2. Prepare the stockholders' equity section of Preston's balance sheet for the transactions. The for the stockholders' equity section of the balance sheet.) Balance Sheet (Partial) Print Print Done Done Stockholders' Equity: Opa, O shares shares Total paid-in capital Total stockholders' equity Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

Solution:

Balance Sheet (Partial)
Particulars	Amount
Stockholder's Equity:
Common stock, $2.50 par, 19000 shares authorized, 4900 shares issued and outstanding	$12,250.00
Paid in capital in excess of par - common stock	$62,750.00
Total paid in capital	$75,000.00
Retained earnings	$0.00
Total stockholder's equity	$75,000.00