Check My Work Entrlies Using T Accounts; Stocknolders\" Equity Germanus Corporat
ID: 2520493 • Letter: C
Question
Check My Work Entrlies Using T Accounts; Stocknolders" Equity Germanus Corporation was ongarieed in 2014. twa authorined to issue 400,000 shares of ne-par common stock witha teted e of 5 per share, and s0,000 shares o $100 pac ee& percen shares of its common stock for $15 per share and 15,000 shares of as preferred stock for $100 per share t. Recond the issuance of the stock using Tcunts Addinienal Paid-ie Capital eceear immeautely sher the issued the cemmon and prefemed Belance Sheet Stockholders Equity) 2.0Explanation / Answer
Answer =1) CASH Amount Amount Isuue of Common stock(120,000 Shares X $ 15) $ 18,00,000 Isuue of Preferred Stock (16,000 Shares X $ 100) $ 16,00,000 $ 34,00,000 Balance C/d TOTAL $ 34,00,000 $ 34,00,000 PREFERRED SHARES Amount Amount $ 16,00,000 Cash Received Balance C/d $ 16,00,000 TOTAL $ 16,00,000 $ 16,00,000 COMMON STOCK Amount Amount $ 6,00,000 Cash Received (120000 X $ 5) Balance C/d $ 6,00,000 TOTAL $ 6,00,000 $ 6,00,000 ADDITTIONAL PAID IN CAPITAL Amount Amount $ 12,00,000 Cash Received (120000 X $ 10) Balance C/d $ 12,00,000 TOTAL $ 12,00,000 $ 12,00,000 Answer =2) GORMANUS CORPORATION BALANCE SHEET (SHAREHOLDER'S EQUITY) MARCH 1, 2014 SHAREHOLDER'S EQUITY AMOUNT AMOUNT Contributed Capital: Common Stock (120,000 Shares , $ 5 Par Value) $ 6,00,000 Preferred Stock( 16,000 Shares , $ 100 Par Value ) $ 16,00,000 Total Contributed Capital $ 22,00,000 Addittional Paid in Capital - Common Stock $ 12,00,000 Total Shareholder's Equity $ 22,00,000