In the corporate charter that it received on 2009
May 1, Norris Company was authorized to issue 15,000 shares of common stock. The company issued 1,000 shares immediately for USD 82 per share, cash.
On July 2, the company issued 100 shares of stock to a lawyer to satisfy a USD 8,400 bill for legal services rendered in organizing the corporation.
On July 5, the company issued 1,000 shares to the principal promoter of the corporation in exchange for a patent. Another 200 shares were issued to this same person for costs incurred and services rendered in bringing the corporation into existence. The market value of the stock was USD 84 per share.
a. Set up T-accounts, and post these transactions. Then prepare a balance sheet for the Norris Company as of 2009 July 5, assuming the authorized stock has a par value of USD 75 per share.
b. Repeat part (a) for the stockholders” equity accounts, and prepare the stockholders” equity section of the July 5 balance sheet assuming the stock authorized has no par value but has a USD 30 per share stated value.
c. Repeat part (a) for the stockholders” equity accounts assuming the stock authorized has neither par nor stated value. Prepare the stockholders” equity section of the balance sheet.