The charter of Evergreen Capital Corporation authorizes the issuance of 900 shares of preferred stock and 1,250

Question:

The charter of Evergreen Capital Corporation authorizes the issuance of 900 shares of preferred stock and 1,250 shares of common stock. During a two month period, Evergreen completed these stock-issuance transactions:

Mar 23 Issued 230 shares of $4 par common stock for cash of $15 per share.

Apr 12 Received inventory valued at $23,000 and equipment with a market value of $20,000 for 320 shares of the $4 par common stock.

17 Issued 900 shares of 5%, $20 par preferred stock for $20 per share.

Requirements

1. Record the transactions in the general journal.

2. Prepare the stockholders’ equity section of the Evergreen balance sheet for the transactions given in this exercise. Retained earnings has a balance of $79,000.

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...