Question

# Stock Issue Activity a)Goofy Company issued 1,000 shares of \$10 par common stock for \$20,000. b)...

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

 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