Question

On September 1, 2017, Hyde Corp., a newly formed company, had the following stock issued and outstanding:• Common stock, no par, $1 stated value, 5,000 shares originally issued at $15 per share.• Preferred stock, $10 par value, 1,500 shares originally issued for $25 per share.Hyde's September 1, 2017 statement of stockholders' equity should reportHow much is -Common stock - Preferred stock -Additional Paid-in capital

Answer 1

Common Stock 5,000

Additional paid-in Common stock 70,000

Preferred Stock 15,000

Additional paid-in Preferred stock 22,500

Step-by-step explanation:

For the common and preferred stock accounts, we multiply the shares outstanding by the face value.

The additional paid-in will be the difference between the par value and the market price of the share at issuance.

Common stock

5,000 issued shares x $ 1 par value = 5,000

Additional paid-in

15 - 1 = 14 additional paid-in per share

5,000 shares x 14 = 70,000

Preferred stock

1,500 issued shares x $ 10 par value = 15,000

Additional paid-on

25 - 10 = 15 additional per share

1,500 x 15 = 22,500