Problem: Our corporation was organized in July 15, 2015. It was authorized to emit 150.000 $25 common stocks of even value and 50.000 cumulative preferred stocks of 14% class A. The class A to of the Favorites the action has an established value of $50. The following transactions related to these actions happened.
a. Emission of 55.000 common stocks by $33 the action.
b. Emission of 2.750 preferred stocks class To by $62 the action.
c. Emission of 27.500 common stocks by $35 the action.
Requirement:
1. Indicates the effect of each transaction in the Financial statements of the organization.
2. After registered the transactions, which is the amount of "stockholders equity"?
3. After registered the transactions, how many common stocks are in circulation?
Assets = Equity Cash Flow
Cash Common Stock+ paid-in Capital in Excess of Par value Preferred Stock+paid-in Capital in Excess of Stated Value