Question

During its first year of operations, Sheffield Corp. had these transactions pertaining to its common stock. Jan. 10 July 1 Issued 26,500 shares for cash at $5 per share. Issued 57,500 shares for cash at $7 per share. Prepare a tabular summary to record the transactions, assuming that the common stock has a par value of $5 per share. Of a transaction causes a decrease In Assets, Liabilities or Stockholders' Equity place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity Item that was reduced) Assets Liabilities Stockholders' Equi Cash Pald-in-Capital Common Stock + PIC in Excess of Par Com. + Revenue Jan. 10 $ July 1 e Textbook and Media Prepare a tabular summary to record the transactions, assuming that the common stock has a par value of $1 per share. (If a transaction causes a decrease in Assets, Liabilities or Stockholders'Equity place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities Stockholders' Equit Paid-in-Capital Common Stock • PIC in Excess of Par Com Cash Revenue Ian 10 $ July 1

Answer 1

Assuming Par Value = $5 per share
	Assets	=	Liabilities	+	Shareholders Equity
					Paid In Capital			Retained Earnings
					Common Stock	Paid In Excess Of Par	+	Ravenue	Expenses	Dividend
Jan-10	$         1,32,500				$          1,32,500
	(26500*5)				(26500*5)
Jul-01	$         4,02,500				$          2,87,500	$                      1,15,000
	(57500*7)				(57500*5)	(57500*2)
Assuming Par Value = $1 per share
	Assets	=	Liabilities	+	Shareholders Equity
					Paid In Capital			Retained Earnings
					Common Stock	Paid In Excess Of Par	+	Ravenue	Expenses	Dividend
Jan-10	$         1,32,500				$              26,500	$                      1,06,000
	(26500*5)				(26500*5)	(26500*4)
Jul-01	$         4,02,500				$              57,500	$                      3,45,000
	(57500*7)				(57500*1)	(57500*6)