Problem - Account for stock transactions. Clarkson Chivas, Inc., was started on July 1, 2010. The company is authorized to issue 200,000 shares of 6%, $10 par value preferred stock, and 1,500,000 shares of common stock with a par value of $1 per share. The following stock transactions took place during the fiscal year ended June 30, 2011:
July 15 - Issued 10,000 shares of common stock for cash at $2 per share
October 1 - Issued 5,000 shares of preferred stock for cash at $115 per shaie
January 12 - Issued 15,000 shares of common stock for cash at $4 per share
March 10 - Issued 7,500 shares of preferred stock for cash at $120 per s are
June 1 - Issued 25,000 shares of common stock for cash at $6 per share
Requirements -
1. Show each transaction in the accounting equation.
2. Prepare the contributed capital portion of the shareholders' equrty section of the balance sheet at June 30, 2011.