Rainoy, Inc., was organized on June 5, 2012. It was authorized to issue 400,000 shares of $10
Question:
Rainoy, Inc., was organized on June 5, 2012. It was authorized to issue 400,000 shares of $10 par common stock and 50,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Rainoy, Inc.
1. Issued 20,000 shares of common stock for $15 per share.
2. Issued 10,000 shares of the class A preferred stock for $30 per share.
3. Issued 50,000 shares of common stock for $18 per share.
Required
Prepare the stockholders’ equity section of the balance sheet immediately after these transactions have been recognized.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For 
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
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