Eastport Inc. was organized on June 5, 2016. It was authorized to issue 440,000

Question

Eastport Inc. was organized on June 5, 2016. It was authorized to issue 440,000 shares of $10 par common stock and 70,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $20 per share. The following stock transactions pertain to Eastport Inc 1. Issued 18,000 shares of common stock for $15 per share. 2. Issued 15,000 shares of the class A preferred stock for $25 per share 3. Issued 47,000 shares of common stock for $18 per share. Required a. Prepare general joumal entries for these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Issued 18,000 shares of common stock for $15 per share. Issued 15,000 shares of the class A preferred stock for $25 per share. 2 3 Issued 47,000 shares of common stock for $18 per share. Credit Note journal entry has been entered Record entry Clear entry View general journal b. Prepare the stockholders' equity section of the balance sheet immediately after these transactions. Stockholders' equity Total stockholders' equity

Explanation / Answer

Journal entry :

Shareholder's equity

Date accounts & explanation debit credit Cash (18000*15) 270000 Common Stock 180000 Paid in capital in excess of par value-Common Stock 90000 (To record issue common stock) Cash (15000*25) 375000 Preferred Stock (15000*20) 300000 Paid in capital in excess of stated value-Preferred stock 75000 (To record issue preferred Stock) Cash (47000*18) 846000 Common Stock 470000 Paid in capital in excess of par value-Common Stock 376000 (To record issue Common Stock)

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