Eastport Inc. was organized on June 5, 2016. It was

Eastport Inc. was organized on June 5, 2016. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock transactions pertain to Eastport Inc.:

1. Issued 15,000 shares of common stock for $12 per share.

2. Issued 5,000 shares of the class A preferred stock for $51 per share.

3. Issued 60,000 shares of common stock for $15 per share.

Required

a. Prepare general journal entries for these transactions.

b. Prepare the stockholders’ equity section of the balance sheet immediately after these transactions.

Common Stock
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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