Tiger Corporation previously had issued 10,000 shares of its $2 par value common
ID: 2571288 • Letter: T
Question
Tiger Corporation previously had issued 10,000 shares of its $2 par value common stock for $15 per share. On December 29, 2014, it sells another 5,000 shares to investors for $20 per share. 9-28 Required: (1) Using account columns, (a) enter the balances in the applicable accounts for the common stock that had previously been issued and (b) record the sale of the 5,000 shares of common stock on December 29, 2014. (2) Prepare the contributed capital section of Tiger Corporation's December 31, 2014 balance sheetExplanation / Answer
Answer:
1
(a) enter the balances in the applicable accounts
Assets
=
Liability
+
Shre holder's Equity
.
Common
Stock
Add’l Pd
-in Capital
Retained Earnings
Revenue
-
Expanses
Balance
20,000
130000
(10,000*2)
(10,000*13)
12/29/2014
100000
10,000
90000
(5000*20)
(5,000*2)
(5,000*18)
_____________________________________________________________
2
Contributed section of Tiger Corporation's December 31, 2014 balance sheet.
Balance sheet (partial)
Stockholders’ Equity Section
Contributed Capital
Common Stock
30,000
Add’l Paid in Capital
220,000
Total Contributed Capital
250,000
Assets
=
Liability
+
Shre holder's Equity
.
Common
Stock
Add’l Pd
-in Capital
Retained Earnings
Revenue
-
Expanses
Balance
20,000
130000
(10,000*2)
(10,000*13)
12/29/2014
100000
10,000
90000
(5000*20)
(5,000*2)
(5,000*18)