Issuing Par Stock On January 29, Quality Marble Inc., a marble contractor, issue

Question

Issuing Par Stock On January 29, Quality Marble Inc., a marble contractor, issued 75,000 shares of $10 par Common stock for cash at $23 per share, and on May 31, it issued 100,000 shares of $4 par Preferred stock for cash at $6 per share a. Illustrate the effects on the accounts and financial statements of the January 29 transaction. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Balance Sheet Assets = Liabilities Stockholders' Equity Stateme nt of Cash Flows Paid-in capital i Common Cash No effect stock par common stock Jan. 29 Statement of Cash Income Statement Flows Financin No effect

Explanation / Answer

1) Statement showing effects on the accounts and financial statements :

Statement of cashflows :

Cash flow from financing activities = $2,325,000

Date Assets = Liabilities + Stock holder's Equity Jan 29 Cash = No Effect + Common stock Paid in capital in excess of par $2,325,000 = No Effect + $1,150,000 $1,175,000

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