Cinema VideoCinema Video Corporation issued 6,000 shares of $0.05 par value comm
ID: 2331593 • Letter: C
Question
Cinema VideoCinema Video
Corporation issued
6,000
shares of
$0.05
par value common stock for
$33.00
per share. How much cash did
Cinema VideoCinema Video
Corporation receive from the stock issue? How will the transaction be shown in theshareholders' equity section of the balance sheet?
How much cash did
Cinema VideoCinema Video
Corporation receive from the stock issuance?
x
=
Cash Received
x
=
How will the transaction be shown in the shareholders' equity section of the balance sheet?
In the stockholders' equity section of the balance sheet, Common stock will
by
$_____
Additional paid-in capital will
increase
decrease
by
$____.
Total stockholders' equity will
decrease
increase
by $ ____
x
=
Cash Received
x
=
Explanation / Answer
Common stock will increase by $300
(6000 x $0.05)
Additional paid-in capital will increase by $197,700
[6000 x ($33.00 - $0.05)]
Total stockholders' equity will increase by $198,000
Number of shares issued x Issue price per share = Cash Received 6000 x $ 33.00 = $ 198,000Related Questions
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