Goldman Inc. was organized on June 1, 2014. It was authorized to issue 430,000 s

Question

Goldman Inc. was organized on June 1, 2014. It was authorized to issue 430,000 shares of $9 par common stock and 60,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Goldman Inc.:

1. Issued 17,000 shares of common stock for $13 per share.
2. Issued 14,000 shares of the class A preferred stock for $27 per share.
3. Issued 54,000 shares of common stock for $17 per share.

Required

Prepare the stockholders’ equity section of the balance sheet immediately after these transactions have been recognized.

Explanation / Answer

the stockholders’ equity section of the balance sheet

Common Stock - authorised 430,000 shares of $9 par $3870000 Common Stock - Issued 71000 shares of $9 par 639000 Paid in capital in excess- common stock 500000 $1139000 Class A Preferred Stock - authorised 60,000 shares stated value $25 $1500000 Preferred Stock - issued 14000 shares at $25 stated value 350000 Paid in capital in excess- Preferred stock 28000 378000 Total Shareholders value $1517000

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