Question

Stock Issue Activity a)Goofy Company issued 1,000 shares of $10 par common stock for $20,000. b) Goofy Company issued an additional 2,000 shares for $25 a share Goofy Company Accounting Equation Balance Sheet Income Statement Event Assets Stockholders Equity Cash + Land = Common Stock + PIC in Excess Revenue - Expense = Net Income a) + = $10,000 + - = b) + = $20,000 + - = Helpful Resources Types of Stock Article

Answer 1

Answer:

Cash

+

Land

=

Common stock

+

PIC in Excess

Revenue

-

Expense

=

Net income

a

$20,000

$10,000

$10,000

b

$50,000

$20,000

$30,000

Calculations:

a.Cash = 1,000 shares x $20 issue price = $20,000;

Common stock = 1,000 x $10 par = $10,000,

PIC in excess = 1,000 shares x ($20 - $10 par) = $10,000

b.Cash = 2,000 shares x $25 issue price = $50,000;

Common stock = 2,000 x $10 par = $20,000,

PIC in excess = 2,000 shares x ($25 - $10 par) = $30,000