Exercise 8-7A (Algo) Recording and reporting common and preferred stock transactions LO 8-3, 8-4

Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 490,000 shares of $12 par common stock and 35,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Inc.:

1. Issued 20,000 shares of common stock for $17 per share.
2. Issued 9,000 shares of the class A preferred stock for $30 per share.
3. Issued 59,000 shares of common stock for $20 per share.

Required

Prepare the stockholders equity section of the balance sheet immediately after these transactions have been recognized.

EASTPORT INC. Balance Sheet (partial) For the Year Ended Year 1 Stockholders' Equity Common stock Total Paid-In Capital $ 0 Total stockholders' equity $ $ 0