Answer:
Common Stock 5,000
Additional paid-in Common stock 70,000
Preferred Stock 15,000
Additional paid-in Preferred stock 22,500
Explanation:
For the common and preferred stock accounts, we multiply the shares outstanding by the face value.
The additional paid-in will be the difference between the par value and the market price of the share at issuance.
<u>Common stock</u>
5,000 issued shares x $ 1 par value = 5,000
<u>Additional paid-in</u>
15 - 1 = 14 additional paid-in per share
5,000 shares x 14 = 70,000
<u>Preferred stock</u>
1,500 issued shares x $ 10 par value = 15,000
<u>Additional paid-on</u>
25 - 10 = 15 additional per share
1,500 x 15 = 22,500
