Stock Issuance Utep Enterprises had the following transactions during 2017, its first year of business. Required: 1. Identify and analyze the effect of each transaction. a. Issued 5,500 shares of $5 par common stock for cash at $15 per share. Activity Operating X Accounts Cash Increase, Common Stock Increase, Additional Paid-in Capital - Common Increase Statement(s) Balance Sheet and Income Statement X Feedback Check My Work 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 minus sign. Balance Sheet Income Statement Stockholders Net Assets Liabilities Equity Revenues Expenses Income No Entry X 0 No Entry 0 No Entry X 0 X No Entry 0 No Entry 0 0 No Entry 0 No Entry o No Entry X 0 X No Entry 0 No Entry o 0 Feedback Check My Work b. Issued 6,600 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. Utep estimated that the building was worth $175,000 on May 1, 2017. Activity Operating X Accounts Building Increase, Common Stock Increase, Additional Paid-in Capital - Common Increase Statement(s) Balance Sheet and Income Statement x 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. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income No Entry X 0 X No Entry 0 No Entry X 0 No Entry 0 No Entry o 0 No Entry 0 No Entry 0 No Entry X 0 No Entry 0 No Entry 0 Feedback Check My Work Partially correct C. Issued 1,100 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 Utep's common stock was selling at $25 per share on June 1. Activity Operating X Accounts Patent Increase, Common Stock Increase, Additional Paid-in Capital - Common Increase Statement(s) Balance Sheet and Income Statement X Feedback Check My Work 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. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income No Entry X 0 No Entry 0 No Entry X 0 X No Entry No Entry 0 0 No Entry 0 No Entry 0 No Entry X 0 X No Entry No Entry 0 0 Feedback Check My Work 2. Determine the balance sheet amounts for common stock and additional paid-in capital. Common stock $ Additional paid-in capital $ Total contributed capital $
