Question

On January 1, 2016, Bartov Company issues 7,000 shares of $100 par value preferred stock at $350 cash per share. On March 1, the company repurchases 7,000 shares of previously issued $1 par value common stock at $86 cash per share.Use the financial statement effects template to record these two transactions.

Answer 1

Balance Sheet

Details Assets = Equity + Liabilities

Cash + non_Cash = Capital + Earned

issued Capital

Preferred $2,450,000 + 0 = $700,000 + $1,750,000 + 0

stock issued

Common -$602,000 + 0 = -$7000 -$595,000 +0

Stock

Step-by-step explanation:

Asset CASH = Shares * share price

Capital Issued = Shares * Par value

Earned Capital= Asset Cash - Capital issued