Question

Torey Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred: Apr. 1 Issued 80,000 shares of common stock at $40 cash per share. 3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000. 8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000. 20 Issued 6,000 shares of preferred stock for cash at $80 per share. Required b. Prepare the stockholders' equity section of the balance sheet at April 30. Assume that the net income for April is $60,000. Stockholders' Equity Paid in Capital Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Preferred Stock Paid-in-Capital in Excess of Par value - Common Stock

Answer 1

AANswer sloctholdes equty Paid maptal : $200,000 Piekned stock (Note-1) Common Stock (Nole-2) Additional pdd 'm apital paid in captal in exceyof par value -freferredl (Nofe-) 18qpco Stock paid in capital mexces of pvalue- Common stock $260o0 304lo CNOte-4) $346600 Tota paid n capital $69000 petained Eanninas $3826000 Stoct holdes eauuty Tota Note C) booo shares x $D Pre ferred stock = = ¢300/000 Noe () F0,00x5)(20co x t s) + (3000 x tG) common StocE $425000

Nole (3) 6000 x 80-S Addrfional paid n capital- Preferred sjoek sopoo No te (u) Addition al paid in caprtal- Common Stock +31000 - 2000x s)ss0o-(20co xs) (egoooxHo- 2,800,000 + 21000 + 40000 $2,861,000