Exercise 11-9A Recording and reporting common and preferred stock transactions LO 11-4

Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 320,000 shares of $8 par common stock and 50,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $30 per share. The following stock transactions pertain to Eastport Inc.:

1. Issued 20,000 shares of common stock for $13 per share.
2. Issued 10,000 shares of the class A preferred stock for $35 per share.
3. Issued 52,000 shares of common stock for $16 per share.

Required a. Prepare general journal entries for these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Issued 20,000 shares of common stock for $13 per share.
• Issued 10,000 shares of the class A preferred stock for $35 per share.
• Issued 52,000 shares of common stock for $16 per share.

b. Prepare the stockholders equity section of the balance sheet immediately after these transactions.

Stockholders equity
Total stockholders equity	$0