Eastport Inc. was organized on June 5, 2016. It was authorized to issue 470,000
ID: 2560141 • Letter: E
Question
Eastport Inc. was organized on June 5, 2016. It was authorized to issue 470,000 shares of $11 par common stock and 70,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Inc.:
Prepare general journal entries for these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Prepare the stockholders’ equity section of the balance sheet immediately after these transactions.
Eastport Inc. was organized on June 5, 2016. It was authorized to issue 470,000 shares of $11 par common stock and 70,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Inc.:
Explanation / Answer
(a).
Date
Account Titles & Explanation
Debit
Credit
(1).
Cash
272000
Common Stock
187000
Additional Paid-in Capital – Common Stock
85000
(For recording issue of common stock)
(2).
Cash
360000
Preferred Stock
300000
Additional Paid-in Capital – Preferred Stock
60000
(For recording issue of preferred stock)
(3).
Cash
1121000
Common Stock
649000
Additional Paid-in Capital – Common Stock
472000
(For recording issue of common stock)
(b).
Stockholders’ equity section of the Balance Sheet
Common stock, 76000 shares @ $11 per par value
$836000
Additional Paid-in Capital – Common Stock
$557000
Preferred stock, 12000 shares @ $25 per par value
$300000
Additional Paid-in Capital – Preferred Stock
$60000
Total Stockholders’ Equity
$1753000
Date
Account Titles & Explanation
Debit
Credit
(1).
Cash
272000
Common Stock
187000
Additional Paid-in Capital – Common Stock
85000
(For recording issue of common stock)
(2).
Cash
360000
Preferred Stock
300000
Additional Paid-in Capital – Preferred Stock
60000
(For recording issue of preferred stock)
(3).
Cash
1121000
Common Stock
649000
Additional Paid-in Capital – Common Stock
472000
(For recording issue of common stock)
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