Analyzing and Identifying Financial Statement Effects of Stock Issuances

On September 1, Magliolo, Inc., (a) issues 18,000 shares of $10 par value preferred stock at $48 cash per share and (b) issues 120,000 shares of $2 par value common stock at $37 cash per share.

a. Using the financial statement effects template, illustrate the effects of these two issuances.

Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital.

Balance Sheet Income Statement Noncash Contrib Earned Transaction Cash Asset + Asset Liabilities + Capital Capital Revenues Expenses = Net Income (a) 864,000 + OV= OV + 180,000 x + 684,000 x O V - OV= 0 (b) 4,440,000 + OV= OV + 240,000 x + 4,200,000 x O V - OV= OV