Stockholders’ equity section of the balance sheet
The charter of Evergreen Capital Corporation authorizes the issuance of 900 shares of preferred stock and 1,250 shares of common stock. During a twomonth period, Evergreen completed these stock-issuance transactions:
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Mar 23 |
Issued 230 shares of $4 par common stock for cash of $15 per share. |
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Apr 12 |
Received inventory valued at $23,000 and equipment with a market value $20,000 for 320 shares of the $4 par common stock. |
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17 |
Issued 900 shares of 5%, $20 par preferred stock for $20 per share. |
Requirements
1.Record the transactions in the general journal.
2.Prepare the stockholders’ equity section of the Evergreen balance sheet for the transactions given in this exercise. Retained earnings has a balance of $79,000.