The following transactions are for Weber Corporation in 2010: a. On March 1, the corporation was organized
Question:
The following transactions are for Weber Corporation in 2010:
a. On March 1, the corporation was organized and received authorization to issue 5,000 shares of 8%, $100 par value preferred stock and 2,000,000 shares of $10 par value common stock.
b. On March 10, Weber issued 5,000 shares of common stock at $35 per share.
c. On March 18, Weber issued 100 shares of preferred stock at $120 per share.
d. On April 12, Weber issued another 10,000 shares of common stock at $45 per share.
Required
1. Identify and analyze the effect of each transaction.
2. Prepare the Stockholders’ Equity section of the balance sheet as of December 31, 2010.
3. Does the balance sheet indicate the market value of the stock at year-end? Explain.
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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
1 a There is no entry b The effect of the issuance of common stock on March 10 can be identified and ...View the full answer
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
