Chapter 8, Problem 7E

Exercise 8-7 Recording and reporting common and preferred stock transactions

Eastport Inc. was organized on June 5, 2018. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock transactions pertain to Eastport Inc.:

1. 1. Issued 15,000 shares of common stock for $12 per share.
2. 2. Issued 5,000 shares of the class A preferred stock for $51 per share.
3. 3. Issued 60,000 shares of common stock for $15 per share.

Required

Prepare the stockholders’ equity section of the balance sheet immediately after these transactions have been recognized.