Gormanus Corporation was organized in 2014. It was authorized to issue 400,000 shares of no-par common stock

Question:

Gormanus was organized in 2014. It was authorized to issue 400,000 shares of no-par with a stated value of $5 per share, and 80,000 shares of $100 par value, 6 percent noncumulative preferred stock. On March 1, the company issued 120,000 shares of its for $15 per share and 16,000 shares of its preferred stock for $100 per share.
1. Record the issuance of the stock using T accounts.
2. Prepare the stockholders’ equity section of Gormanus’ as it would appear immediately after the company issued the common and preferred stock.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...