Beta Co. sold 10,000 shares of common stock, which has a par value of $25, for $

Question

Beta Co. sold 10,000 shares of common stock, which has a par value of $25, for $27 per share. The company also sold 1,000 shares of $100 par value preferred stock for $110. Assume the balance in retained earnings is $100,000.

Prepare the stockholders' equity section of Beta's balance sheet. (Omit the "$" sign in your response.)

Beta Co. sold 10,000 shares of common stock, which has a par value of $25, for $27 per share. The company also sold 1,000 shares of $100 par value preferred stock for $110. Assume the balance in retained earnings is $100,000.

Explanation / Answer

Total Stock = Stock @ 27$ + Stock @ 110$ + Retained Earnings
= (27 * 10,000) + (110 * 1,000) + 100,000
= (25+2 * 10,000) + (100+10 * 1,000) +100,000
= (270,000 + 110,000 + 100,000 )
= 480,000 $

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