Problem: Module 3 Textbook Problem 13 Learning Objectives: .3-11 Differentiate between common and preferred stock .3-12 Show how issuing different classes of stock affects financial statements Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 480,000 shares of $10 par common stock and 60,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Inc.: 1. Issued 19,000 shares of common stock for $15 per share. 2. Issued 10,000 shares of the class A preferred stock for $30 per share. 3. Issued 50,000 shares of common stock for $18 per share. Required Prepare the stockholders' equity section of the balance sheet immediately after these transactions have been recognized. EASTPORT INC. Balance Sheet (partial) For the Year Ended Year 11 Stockholders' Equity Common stock Preferred stock $ 1,185,000 300,000 Total Paid-In Capital $ 1,485,000 Total stockholders' equity $ 1,485,000