Tiger Corporation previously had issued 10,000 shares of its $2 par value common

ID: 2571288 • Letter: T

Question

Tiger Corporation previously had issued 10,000 shares of its $2 par value common stock for $15 per share. On December 29, 2014, it sells another 5,000 shares to investors for $20 per share. 9-28 Required: (1) Using account columns, (a) enter the balances in the applicable accounts for the common stock that had previously been issued and (b) record the sale of the 5,000 shares of common stock on December 29, 2014. (2) Prepare the contributed capital section of Tiger Corporation's December 31, 2014 balance sheet

Explanation / Answer

Answer:

(a) enter the balances in the applicable accounts

Assets

Liability

Shre holder's Equity

Common
Stock

Add’l Pd
-in Capital

Retained Earnings

Revenue

Expanses

Balance

20,000

130000

(10,000*2)

(10,000*13)

12/29/2014

100000

10,000

90000

(5000*20)

(5,000*2)

(5,000*18)

_____________________________________________________________

Contributed section of Tiger Corporation's December 31, 2014 balance sheet.

Balance sheet (partial)

Stockholders’ Equity Section

Contributed Capital

Common Stock

30,000

Add’l Paid in Capital

220,000

Total Contributed Capital

250,000