Question: Rich Supply Corporation was organized in 2011 It was authorized

Rich Supply Corporation was organized in 2011. It was authorized to issue 100,000 shares of no-par common stock with a stated value of $5 per share and 20,000 shares of $100 par value, 6 percent noncumulative preferred stock. On March 1, the company issued 30,000 shares of its common stock for $15 per share and 4,000 shares of its preferred stock for $100 per share.
1. Record the issuance of the stock in T accounts.
2. Prepare the stockholders’ equity section of Rich Supply’s balance sheet as it would appear immediately after the company issued the common and preferred stock.

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  • CreatedSeptember 10, 2014
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