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Theownersofanewventurehavedecidedtoorganizeasacorpotration.Theinitialequityinvestmentisvalueda$100,000,reflectingcontributionsoftheeentrepreneurandherfamilyandfriends.Onehundredthousandsharesofstockswereinitiallyissued. A. What dollar amount would initially be recorded in the common stock account? B. If a par value on the common stick were set
Theownersofanewventurehavedecidedtoorganizeasacorpotration.Theinitialequityinvestmentisvalueda$100,000,reflectingcontributionsoftheeentrepreneurandherfamilyandfriends.Onehundredthousandsharesofstockswereinitiallyissued. A. What dollar amount would initially be recorded in the common stock account? B. If a par value on the common stick were set at $0.01 per share should how the initial equality investment would be recorded C. Now assume that 20000 additional shares of stock are sold to an angel investor at $5 per share six months after the initial incorpotration. Show how your answer in part A would change if the common stock did not have a par value. Also shoe how your answer in part B would change given a par value of $0 01 per share. D. At the end of the first year of opetariob, the venture recorded an operating loss is z $80,000. Show them dollar amounts in the common stock account, the additional paid in capital account and the retained warning account at the end of one year. Also indicate that cumulative amount in stockholders equity the the end of one year
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