2. Door Company has 2 classes of common stock. Only the class A common stockhold
ID: 2451573 • Letter: 2
Question
2. Door Company has 2 classes of common stock. Only the class A common stockholders are entitled to vote.
issued and outstanding 1,175,000 shares:
Requirement A: Record the issuance of the class A common stock for cash. Use the Door account titles (additional paid in capital, cash, class A common stock, class B common stock, retained earnings)
ACCOUNTS DEBITS CREDITS
__________ ______ _______
Requirement B: Record the issuance of the class B common stock for cash. Use the Door account titles.
ACCOUNTS DEBITS CREDITS
__________ ______ _______
Requirement C: How much of Door's stockholders' equity was contributed by the stockholders? How much was provided by profitable operations? Does this division of equity suggest that the company has been successful?
The stockholders contributed $_____ to stockholders' equity and $____ was provided by profitable operations. This division suggests that the company ____ (has, has not) been successful because most of its stockholders' equity has come from ______ (the stockholders, profitable operations).
Requirement 4: Write a sentence to describe what Door Company's stockholders' equity means.
Door's stockholders' equity of $____ means that the company's stockholders own $____ of the business's assets.
Stockholders' Equity (partial balance sheet) Capital stock... Class A common stock, voting, $4 par value, authorized,issued and outstanding 1,175,000 shares:
$4,700,000 Class B common stock, nonvoting, no par value, authorized, issued, and outstanding 45,600,000 shares: 11,100,000 15,800,000 (total) Additional paidin capital 2,097,000 Retained earnings 867,233,000 Total stockholders' equity $885,130,000 (total)Explanation / Answer
2. Door Company has 2 classes of common stock. Only the class A common stockhold
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