Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please complete part c, the balance sheet. Larkspur, Inc. was organized on January 1, 2022. It is authorized to issue 14,000 shares of 8%,$100 par

image text in transcribedimage text in transcribedimage text in transcribed

Please complete part c, the balance sheet.

Larkspur, Inc. was organized on January 1, 2022. It is authorized to issue 14,000 shares of 8%,$100 par value preferred stock, and 505,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 77,000 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,800 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 25,000 shares of common stock for land. The asking price of the land was $88,000. The fair value of the land was $81,000. May 1 Issued 76,000 shares of common stock for cash at $4.25 per share. Aug. 1 Issued 10,500 shares of common stock to attorneys in payment of their bill of $36,000 for services performed in helping the company organize. Sept. 1 Issued 12,000 shares of common stock for cash at $5 per share. Nov. 1 Issued 3,000 shares of preferred stock for cash at $112 per share. Date Account Titles and Explanation Jan. 10 Mar. 1 Apr. 1 May 1 Aug. 1 Sept. 1 Cash Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Organization Expense Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Cash Nov. 1 Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Debit Credit 29000 81000 22800095000 36000 (c) Prepare the paid-in capital section of stockholders' equity at December 31, 2022. (Enter the account name only and do not provide the descriptive information provided in the question.) Larkspur, Inc. Balance Sheet (Partial) $ $ $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions