The Eastern Spruce equity accounts for the last year are as follows: Common stocks, $2 par value....................................?

Question:

The Eastern Spruce equity accounts for the last year are as follows:

Common stocks, $2 par value....................................?

500 shares outstanding ..................................250,000

Capital surplus ...............................................750,000

Total..........................................................................?

a) What are the common stock and total equity values for the equity accounts?

b) The company has decided to issue 5,000 shares of stock at a price of $30.00 per share. Show the effects of the new issue on the equity accounts.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...