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Analyzing and Identifying Financial Statement Effects of Stock Issuances (FSET) On September 1, Magliolo, Inc., (a) issues 13,500 shares of $10 par value preferred stock
Analyzing and Identifying Financial Statement Effects of Stock Issuances (FSET)
On September 1, Magliolo, Inc., (a) issues 13,500 shares of $10 par value preferred stock at $48 cash per share and (b) issues 90,000 shares of $2 par value common stock at $37 cash per share. Using the financial statement effects template, illustrate the effects of these two issuances.
NOTE: Use negative signs with your answers, when appropriate.
NOTE: Select "N/A" as your answer if a part of the accounting equation is not affected.
Balance Sheet | Income Statement | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash | Noncash | Contributed | Earned | Net | |||||||||||||
Transaction | Asset | + | Assets | = | Liabilities | + | Capital | + | Capital | Revenue | - | Expenses | = | Income | |||
i. Preferred stock issuance. | Answer | Answer | Answer | Answer | |||||||||||||
AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A | AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A | Preferred stock | AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A | ||||||||||||||
Answer | |||||||||||||||||
AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A | |||||||||||||||||
ii. Common stock issuance. | Answer | Answer | Answer | Answer | |||||||||||||
AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A | AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A | Common stock | AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A | ||||||||||||||
Answer | |||||||||||||||||
AnswerAdditional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A |
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