Sunshine Bakery, Inc. has been authorized to issue 300,000 shares of $8 par value common stock and
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Question:
Sunshine Bakery, Inc. has been authorized to issue 300,000 shares of $8 par value common stock and 3,000 shares of 14 percent, cumulative, preferred stock with a par value of $12.
Prepare the entries for the following transactions that all took place in June 2012:
150,000 shares of common stock are issued for cash at $25 per share.
1,500 shares of preferred stock are issued for cash at $18 per share.
Shares of common stock are issued in exchange for legal services received in the incorporation process. The fair market value of the legal services is $18,000.
Prepare the paid-in capital section of Sunshine’s balance sheet as of June 30, 2012
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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