FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Following are the issuances of stock transactions
1. A corporation issued 4,000 shares of $10 par value common stock for $48,000 cash.
2. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to
be worth $54,500. The stock has a $3 per share stated value.
3. A corporation issued 2,000 shares of no par common stock to its promoters in exchange for their efforts, estimated to
be worth $54,500. The stock has no stated value.
4. A corporation issued 1000 shares of $50 par value preferred stock for $104,500 cash.
Analyze each transaction from issuances of stock by showing its effect on the accounting equation- specifically, identity the accounts
and amounts (including or - for each transaction.
Answer is not complete.
Assets
Lisbities
1.
Cash
48.000O
Coevon Soa $to Par Vaue
(+) ncrease
(40,000
Paidin Captin Excess of Par
Vale Commce ck
O nose .000 O
Organzetion Expenses
O-) decrease 54500 O
2.
Coman Stock, 13 stated vae
O)increane
2,000 O
2.
Paidin Capd in Excess of Stated
Vale. Common Stock
(2
Organization Epenses
Common Stodk, No Par Va
O decase 4.500O
OOcrease
13.
+)increase
Prelemed Stook $50 Par Vakue
Paid in Capt in Excess of Par
we Prefened Steck
4.
54.500
increese
104.500O
[4.
Cash
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Transcribed Image Text:Following are the issuances of stock transactions 1. A corporation issued 4,000 shares of $10 par value common stock for $48,000 cash. 2. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $54,500. The stock has a $3 per share stated value. 3. A corporation issued 2,000 shares of no par common stock to its promoters in exchange for their efforts, estimated to be worth $54,500. The stock has no stated value. 4. A corporation issued 1000 shares of $50 par value preferred stock for $104,500 cash. Analyze each transaction from issuances of stock by showing its effect on the accounting equation- specifically, identity the accounts and amounts (including or - for each transaction. Answer is not complete. Assets Lisbities 1. Cash 48.000O Coevon Soa $to Par Vaue (+) ncrease (40,000 Paidin Captin Excess of Par Vale Commce ck O nose .000 O Organzetion Expenses O-) decrease 54500 O 2. Coman Stock, 13 stated vae O)increane 2,000 O 2. Paidin Capd in Excess of Stated Vale. Common Stock (2 Organization Epenses Common Stodk, No Par Va O decase 4.500O OOcrease 13. +)increase Prelemed Stook $50 Par Vakue Paid in Capt in Excess of Par we Prefened Steck 4. 54.500 increese 104.500O [4. Cash
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