Goldman Inc. was organized on June 1, 2014. It was authorized to issue 500,000 s

Question

Goldman Inc. was organized on June 1, 2014. It was authorized to issue 500,000 shares of $10 par common stock and 100,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock transactions pertain to Goldman Inc.: 1. Issued 40,000 shares of common stock for $16 per share. 2. Issued 20,000 shares of the class A preferred stock for $52 per share. 3. Issued 60,000 shares of common stock for $20 per share. Required Prepare the stockholders’ equity section of the balance sheet immediately after these transactions have been recognized.

Fill in totals

Preferred Stock total-

Common Stock Total-

Paid in capitial in excess of stated value,preferred stock

paid in capital in excess of parr common stock

Explanation / Answer

Preferred total 20,000*50                      = $1,000,000

Paid in excess - Preferred 20,000*2    =         40,000

Common stock 100,000*10                  = $1,000,000

Paid in excess                                               840,000

Preferred total 20,000*50                      = $1,000,000

Paid in excess - Preferred 20,000*2    =         40,000

Common stock 100,000*10                  = $1,000,000

Paid in excess                                               840,000

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