Feeney Corporation is authorized to issue 200,000 shares of $1 par value common stock and 50,000 shares of $10 par value preferred stock. During the year the company issued the following shares: Feb 2 Issued 20,000 shares of common stock, $1 par value, for cash of $40,000. Mar 17 Issued 2,000 shares of preferred stock, $10 par value, for cash of $25,000. May 24 Issued 10,000 shares of common stock, $1 par value, for cash of $30,000. Aug 15 Purchased 2,000 shares of common stock for $28,000 to put into the treasury. Oct 12 Sold 1,000 shares of treasury stock for $16 per share. a. How many common shares have been issued? b. How many common shares are outstanding? c. How many preferred shares have been issued d. How many preferred shares are outstanding? e. Prepare the stockholder's equity section of the balance sheet for the year ended assuming the net income for the year was $35,000.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

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Feeney Corporation is authorized to issue 200,000 shares of $1 par value common stock and 50,000
shares of $10 par value preferred stock. During the year the company issued the following shares:

Feb 2	Issued 20,000 shares of common stock, $1 par value, for cash of $40,000.

Mar 17	Issued 2,000 shares of preferred stock, $10 par value, for cash of $25,000.

May 24	Issued 10,000 shares of common stock, $1 par value, for cash of $30,000.

Aug 15	Purchased 2,000 shares of common stock for $28,000 to put into the treasury.

Oct 12	Sold 1,000 shares of treasury stock for $16 per share.

a. How many common shares have been issued?
b. How many common shares are outstanding?
c. How many preferred shares have been issued
d. How many preferred shares are outstanding?
e. Prepare the stockholder's equity section of the balance sheet for the year ended assuming
the net income for the year was $35,000.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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