Gormanus Corporation was organized in 2014. It was authorized to issue 400,000 shares of no-par common stock with a stated value of $5 per share, and 80,000 shares of $100 par value, 6 percent noncumulative preferred stock. On March 1, the company issued 120,000 shares of its common stock for $15 per share and 16,000 shares of its preferred stock for $100 per share.
1. Record the issuance of the stock using T accounts.
2. Prepare the stockholders’ equity section of Gormanus’ balance sheet as it would appear immediately after the company issued the common and preferred stock.

  • CreatedMarch 26, 2014
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