Question

Eastport Inc. was organized on June 5, 2018. It was authorized to issue 370,000 shares of $11 par common stock and 70,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $30 per share. The following stock transactions pertain to Eastport Inc.:

1. Issued 16,000 shares of common stock for $16 per share.
2. Issued 13,000 shares of the class A preferred stock for $35 per share.
3. Issued 43,000 shares of common stock for $19 per share.

Answer 1

Accounts titles and explanation	Debit	Credit
Cash	$256,000
Common stock		$176,000
Paid in capital excess of par - common stock		$80,000
(common stock issued)
Cash	$455,000
Preferred stock		$390,000
Paid in capital excess of par - preferred stock		$65,000
(preferred stock issued at par)
Cash	$817,000
Common stock		$473,000
Paid in capital excess of par - common stock		$344,000
(common stock issued)