Question

CPA Question 01 On September 1, 2017, Hyde Corp., a newly formed company, had the following stock issued and outstanding: • Common stock, no par, $1 stated value, 5,000 shares originally issued at $15 per share. • Preferred stock, $10 par value, 1,500 shares originally issued for $25 per share. Hyde's September 1, 2017 statement of stockholders' equity should repor

Answer 1

The computation is shown below:

                          Common stock      Preferred stock    Additional paid in capital

Common stock  $5,000                                                 $70,000

Preferred stock                                $15,000                 $22,500

Total                   $5,000                  $15,000                $92,500

The computation is shown below:

The common stock is

= 5,000 shares × $1

= $5,000

The additional paid in capital is

= 5,000 × ($15 -$1)

= $70,000

Preferred stock

= 1,500 shares × $10

= $15,000

The additional paid in capital is

= 1,500 shares  ($25 - $10)

= $22,500