Stock Issuance

Bonano Industries had the following transactions during 2017, its first year of business.

Required:

1. Identify and analyze the effect of each transaction.

a. Issued 4,300 shares of $5 par common stock for cash at $15 per share.

-Activity:

-Accounts:

-Statement(s):

How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

b. Issued 7,000 shares of common stock on May 1 to acquire a factory building from Barkley Company. Barkley had acquired the building in 2013 at a price of $150,000. Bonano estimated that the building was worth $175,000 on May 1, 2017.

- Activity:

- Accounts:

- Statement(s):

How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

c. Issued 2,100 shares of stock on June 1 to acquire a patent. The accountant has been unable to estimate the value of the patent but has determined that Bonano's common stock was selling at $25 per share on June 1.

- Activity:

- Accounts:

- Statement(s):

How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

2. Determine the balance sheet amounts for common stock and additional paid-in capital.

- Common Stock: $

- Additional Paid-in Capital: $

- Total Contributed Capital: $

Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income