Preston Road Inc was organized last year when its founders contributed $9 million and issued 3 million shares of $1 25 par value stock The company earned $750,000 in its first year and paid dividends of $325,000 Construct the Equity section of Preston Roads balance sheet as of the end of that year ...

Common stock 3M shrs 125 par 3750000 Paid in Excess 9M 375M 5250000 Total Equity 9000 ...

Preston Road Inc. was organized last year when its founders contributed $9 million and issued 3 million

Question:

Preston Road Inc. was organized last year when its founders contributed $9 million and issued 3 million shares of $1.25 stock. The company earned $750,000 in its first year and paid dividends of $325,000. Construct the Equity section of Preston Road’s as of the end of that year.

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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...