POSTING QUESTION INVOLVING : Journalizing issuance of stock and preparing the stockholders equity section of the...

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Accounting

POSTING QUESTION INVOLVING : Journalizing issuance of stock andpreparing the stockholders equity section of the balance sheet
Known History: As of March 23-Common Stock $690
The Charter of Trugreen Corporation authorizes the issuance of900 shares of preferred stock and 1,400 shares of common stock.During a two-month period Trugreen completed these stock-issuancetransactions:
Mar 23 Issued 230 shares of $3 par value common stock for cashof $15 per share.
April 12 Received inventory with a market value of $27,000 andequipment with a market value of $19,000 for 320 shares of the $3par value common stock.
April 17 Issued 900 shares of 5%, $20 par value preferred stockfor $20 per share.
Required to figure out two things
Record the transactions in the general journal by Date, Accountsand Explanations, Debits, and credits
Prepare the stockholders equity section of the Trugreen balancesheet as of April 30, 2018, for the transactions in this exerciseRetained Earnings has a balance of $73,000 at April 30th.
Balance Sheet Partial (NOT SURE IF THE DATE, NAME, OR $ AMOUNTSHOULD BE ABOVE THIS)
then Stockholder's equity (AGAIN NOT SURE WHAT SHOULD BE ABOVETHIS)
Paid In Capital: Preferred Stock , 5% , $20 par value ; 900shares authorized, issued and outstanding= AMOUNT?
Common stock --$3 Par Value ; 1,400 shares authorized, 550shares issued and outstanding = AMOUNT?
Paid-in captial in Excess of par-Common=AMOUNT?
total paid in capital=AMOUNT?
Retained Earnings=AMOUNT?
Total stockholders Equity=AMOUNT?

Answer & Explanation Solved by verified expert

3.9 Ratings (488 Votes)

1 Authorised shares Authorised shares are those shares a company has been authorised to issue as per Law A company cannot issue more than these shares However a company after following prescribed conditions by the law can issue more than these shares Preferred stock 900 shares Common or Equity stock 1400 shares 2 Things to remember while journalising the stock issue transactipons Paid in See Answer

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POSTING QUESTION INVOLVING : Journalizing issuance of stock andpreparing the stockholders equity section of the balance sheetKnown History: As of March 23-Common Stock $690The Charter of Trugreen Corporation authorizes the issuance of900 shares of preferred stock and 1,400 shares of common stock.During a two-month period Trugreen completed these stock-issuancetransactions:Mar 23 Issued 230 shares of $3 par value common stock for cashof $15 per share.April 12 Received inventory with a market value of $27,000 andequipment with a market value of $19,000 for 320 shares of the $3par value common stock.April 17 Issued 900 shares of 5%, $20 par value preferred stockfor $20 per share.Required to figure out two thingsRecord the transactions in the general journal by Date, Accountsand Explanations, Debits, and creditsPrepare the stockholders equity section of the Trugreen balancesheet as of April 30, 2018, for the transactions in this exerciseRetained Earnings has a balance of $73,000 at April 30th.Balance Sheet Partial (NOT SURE IF THE DATE, NAME, OR $ AMOUNTSHOULD BE ABOVE THIS)then Stockholder's equity (AGAIN NOT SURE WHAT SHOULD BE ABOVETHIS)Paid In Capital: Preferred Stock , 5% , $20 par value ; 900shares authorized, issued and outstanding= AMOUNT?Common stock --$3 Par Value ; 1,400 shares authorized, 550shares issued and outstanding = AMOUNT?Paid-in captial in Excess of par-Common=AMOUNT?total paid in capital=AMOUNT?Retained Earnings=AMOUNT?Total stockholders Equity=AMOUNT?