Torey Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders’ equity occurred:Apr.1Issued 80,000 shares of common stock at $40 cash per share. 3Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000. 8Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000. 20Issued 6,000 shares of preferred stock for cash at $80 per share.Prepare the stockholders’ equity section of the balance sheet at April 30. Assume that the net income for April is $60,000.

Introduction: Paid in capital in excess of PAR: Shares issued more than PAR value. Th excess of PAR…

Answered: Torey Corporation was organized on…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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Torey Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders’ equity occurred:

Apr.	1	Issued 80,000 shares of common stock at $40 cash per share.
	3	Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000.
	8	Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000.
	20	Issued 6,000 shares of preferred stock for cash at $80 per share.

Prepare the stockholders’ equity section of the balance sheet at April 30. Assume that the net income for April is $60,000.

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