Runnels Geometric Designs Company was started on January 1, 2009. The company is authorized to issue 50,000

Question:

Runnels Geometric Designs Company was started on January 1, 2009. The company is authorized to issue 50,000 shares of 8%, $105 par value preferred stock and 600,000 shares of common stock with a par value of $2 per share. The following stock transactions took place during 2009:

January 15 .....Issued 5,000 shares of common stock for cash at $3 per share

March 1 ......Issued 10,000 shares of preferred stock for cash at $110 per share

July 12 .....Issued 30,000 shares of common stock for cash at $5 per share

October 10 ....Issued 5,000 shares of preferred stock for cash at $108 per share

December 1 ...Issued 20,000 shares of common stock for cash at $7 per share

Requirements

1. Show each transaction in the accounting equation.

2. Prepare the contributed capital portion of the stockholders’ equity section of the balance sheet at December 31, 2009.

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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...