Common Stock Issuance Cary Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2016, the first year of the corporation's existence: Sold 5,000 shares of common stock for $18 per share Issued 5,000 shares of common stock in exchange for a patent valued at $100,000 At the end of the Cary's first year, total contributed capital amounted to: a. $190,000 b. $90,000 c. $40,000 d. $100,000
Q: In 2022, Elaine paid $2,800 of tuition and $640 for books for her dependent son to attend State…
A: American Opportunity Tax Credit can be claimed against the qualified education expenses of a…
Q: At December 31, 2021, Monty Imports reported this information on its balance sheet. Accounts…
A: As per dual concept of accounting, every transaction has dual impact on the books of accounts.The…
Q: Zachary Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area.…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Exercise 5-33 (Algo) Methods of Estimating Costs: Account Analysis (LO 5-1, 2) Hughes Payroll and…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Polypipe Company acquired 80% of Svedex Company’s voting stock for $95,000 in cash. The…
A: Noncontrolling interest, also known as minority interest, refers to the portion of a subsidiary's…
Q: Cost Formula The following amounts of various cost categories are experienced by Patton…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Petty cash R7 000, Bank overdraft R 5 000, Prepaid Expenses R 8000. Total current liabilities in the…
A: Correct answer : False This statement is false because prepaid cash and Prepaid expenses are assets…
Q: Richards & James is a multinational corporation that manufactures and markets many household…
A: Ratio analysis helps to analyze the financial statements of the company. Management can take…
Q: Bayas Corporation uses process costing with 2 departments: first Mixing, and then on to Drying. In…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: Nov. 1 Nov. 15 Nov. 18 Nov. 20 Nov. 28 The business received $16,000 cash and issued common stock.…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: (a) Prepare a revised statement of financial position using the available information. Assume that…
A: The statement of financial position is another term for the balance sheet.. The statement lists the…
Q: During which phase of the business cycle would Dyson, a small-appliance manufacturer, be most likely…
A: The business cycle refers to the natural rise and fall of economic growth that occurs over time…
Q: CAB Ltd. Has collected the following data and asks you to prepare the Income statement: Cost of…
A: Cost of goods sold means the cost of goods which has been actually sold out during the year. When we…
Q: The following amounts have been extracted from the accounts Sales Cost of Goods Sold Inventory…
A: Inventory management is critical for balancing the expenses of maintaining and purchasing inventory…
Q: Compute the missing amount in the accounting equation for each entity from the financial information…
A: The basic equation followed for the preparation of the financial statements is referred to as…
Q: Required: Compute SEP's taxable income. Note: Amounts to be deducted shoul
A: Taxable income is the part of your gross income that is used to determine how much tax you will owe…
Q: Sage Hill Company reported net income of $220,000 for the current year. Depreciation recorded on…
A: Cash flow statement is the one which is prepared by the entity for the purpose of depicting the cash…
Q: 1. Classify the following manufacturing costs of Business Solutions as either direct or indirect. 2.…
A: The costs that are directly related to the production process are classifed as direct costs. The…
Q: Pronghorn Corporation's balance sheet at the end of 2024 included the following items. Current…
A: A balance sheet is the financial statement that records all the assets, liabilities and…
Q: On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in…
A: Translation is the process through which the financial statements of a foreign subsidiary are…
Q: Rollins Inc. reported the following selected financial statement data: Cash Accounts receivable…
A: Inventory turnover ratio indicates the number of times inventory was sold during a period. Inventory…
Q: Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: following SUPERVALU, one of the largest grocery retailers in the United States, is headquartered in…
A: Accounting ratios are financial ratios through which a company can analyze its performance in terms…
Q: Actuality Company is considering an investment in equipment costing $24,000 with a six-year life and…
A: 1. Investment in Equipment: The company is considering spending $24,000 to purchase a piece of…
Q: [The following information applies to the questions displayed below.] Clopack Company manufactures…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Weighted Average Method, Unit Cost, Valuing Inventories Applegate Enterprises produces premier…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production represents the production of a process in…
Q: Derrick owns a farm in eastern North Carolina. A hurricane hit the area (a national disaster area…
A: Certain losses are tax deductible under the Internal Revenue Code. To qualify, the loss must not…
Q: The estimated warranty obligation at the end of the financial year is best described as a OA.…
A: A contingent liability is a liability that may occur in future depending upon outcome of a future…
Q: Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: On March 31, 2019, the balances of the accounts appearing in the ledger of Royal Furnishings…
A: Closing entries are those which are prepared by the entity for the purpose of closing temporary…
Q: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each…
A: Joint cost means the cost incurred to produce more than one units and then joint cost need to be…
Q: Current Attempt in Progress Sunland Company offers a five-year warranty on its products. Sunland…
A: Warranty expenses refer to the costs incurred by a company to repair or replace defective products…
Q: Rockline Industries is a leading manufacturer of wet wipes, coffee filters, and baking cups and is…
A: An income statement stands for the statement that shows profits and loss of the firm, its revenue…
Q: Identifying the Reporting of Contract Revenues and Costs in Financial Statements Indicate how each…
A: Contract revenue refers to the money a business expects to earn from fulfilling its contractual…
Q: On January 1, 2025, Oriole Co. sells land for which it had paid $707,400 to Sargent Company,…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Net Income Planning Nolden Company has charged a selling price of $24 per unit, incurred variable…
A: The break-even sales are the sales where the business earns no profit or loss during the period. The…
Q: O'Brien Company manufactures and sells one product. The following information pertains to each of…
A: The income statement is prepared to record the revenue and expenses for the current period. The…
Q: O'Brien Company manufactures and sells one product. The following information pertains to each of…
A: Variable Costing method is a method where all the variable costs are used to calculate cost per…
Q: ACC 301 Gross Profit Method Raynor Company lost most of its inventory in a fire just before the…
A: Cost of goods sold means the cost of goods which has been actually sold out during the year. When we…
Q: 3 C Prepare a classified statement of financial position; assume that ¥39,000 of the note payable…
A: Financial statements are those statements which are prepared at the end of accounting period. The…
Q: in 2022 Open Arms Charitable Trust a section 501c3 exempt organization received unrelated business…
A: Form 990-T is a tax form used by tax-exempt organizations to report unrelated business income.…
Q: Mickey Is a 12-year-old dialysis patient. Three times a week for the entire year, he and his mother,…
A: Itemized deduction will only be available for the miles driven for medical purposes only, Other…
Q: Entries for bad debt expense under the direct write-off and allowance methods Seaforth International…
A: Bad debt expense arises when the receivables from the customers become bad or irrecoverable. It is…
Q: Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December…
A: a. Prepare schedules for acquisition-date fair value allocation and amortizations for Adams’s…
Q: 18 For a 13-person team, on average, how many overtime hours will each person need to work? 58 230…
A: Overtime required can be calculated by deducting the regular hours required from the total labor…
Q: Oriole Centre is an experienced home appliance dealer. Oriole Centre also offers a number of…
A: As per the accounting standard (IFRS 15) Revenue from contracts with customer which is based on 5…
Q: January budgeted selling and administrative expenses for the retail shoe store that Nadege Weib…
A: Selling and administrative costs are all costs associated with selling a product.These include…
Q: Gale Company has the following inventory and purchases during the fiscal year ended December 31,…
A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…
Q: Jeans's Fitness Club provides monthly memberships as well as personal training sessions. The…
A: Operating income is the profit a company generates from its core business activities, calculated by…
don't give answer in image format
Step by step
Solved in 5 steps
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
- Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
- Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.