Question

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

Answer 1

Answer:

Hyde Corp. equity report - September 1, 2017

Stocks outstanding:

common stocks outstanding (5,000 stocks¹)                              $5,000

preferred stock outstanding (1,500 stocks²)                                $15,000

Additional paid-in capital:

common stocks outstanding (5,000 stocks³)                              $70,000

preferred stock outstanding (1,500 stocks⁴)                                $22,500

Total additional paid-in capital                                                      $92,500

¹ common stocks are reported at par value: $1

² preferred stocks are reported at par value: $10

³ additional pain-in capital for every common stock = $15 - $1 = $14

⁴ additional pain-in capital for every preferred stock = $25 - $10 = $15