Problem: The Eastern Spruce equity accounts for last year are as follows:
Common stock, $2 par value 500 shares outstanding ?
Capital surplus $250,000
Retained earnings $750,000
Total ?
Q1. What are the common stock and total equity values for the equity account?
Q2. The company has decided to issue 5,000 shares of stock at a price of $30 per share. Show the effects of the new issue on the equity accounts.