Question
Share Issuances for Cash Finlay, Inc., issued 22,000 shares of $50 par value preferred stock at $194 per share and 33,000 shares of no-par value
Share Issuances for Cash
Finlay, Inc., issued 22,000 shares of $50 par value preferred stock at $194 per share and 33,000 shares of no-par value common stock at $29 per share. The common stock has no stated value. All issuances were for cash.
a. Determine the financial statement effect of the share issuances (preferred and common).
| Balance Sheet | Income Statement | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | = | Liabilities | + | Equity | Revenues | - | Expenses | = | Net Income | |||
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b. Determine the financial statement effect of the issuance of the common stock assuming that it had a stated value of $5 per share.
| Balance Sheet | Income Statement | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | = | Liabilities | + | Equity | Revenues | - | Expenses | = | Net Income | |||
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c. Determine the financial statement effect of the issuance of the common stock assuming that it had a par value of $1 per share.
| Balance Sheet | Income Statement | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | = | Liabilities | + | Equity | Revenues | - | Expenses | = | Net Income | |||
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