On 2009 July 3, Barr Company was authorized to issue 15,000 shares of common stock; 3,000 shares were issued immediately to the incorporators of the company for cash at USD 320 per share. On July 5 of that year, an additional 300 shares were issued to the incorporators for services rendered in organizing the company. The board valued these services at USD 96,000. On 2009 July 6, legal and printing costs of USD 12,000 were paid. These costs related to securing the corporate charter and the stock certificates.
a. Set up T-accounts and post these transactions. Then prepare the balance sheet of the Barr Company as of the close of 2009 July 10, assuming the authorized stock has a USD 160 par value.
b. Repeat (a) for the T-accounts involving stockholders” equity, assuming the stock is no-par stock with a USD 240 stated value. Prepare the stockholders” equity section of the balance sheet.
c. Repeat (a) for the T-accounts involving stockholders” equity, assuming the stock is no-par stock with no stated value. Prepare the stockholders” equity section of the balance sheet.