On January 1, 2016, Bartov Company issues 7,000 shares of $100 par value preferred stock at $350 cash per share. On March 1, the company repurchases 7,000 shares of previously issued $1 par value common stock at $86 cash per share. Use the financial statement effects template to record these two transactions.

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Business

Merle

17 January, 13:26

On January 1, 2016, Bartov Company issues 7,000 shares of $100 par value preferred stock at $350 cash per share. On March 1, the company repurchases 7,000 shares of previously issued $1 par value common stock at $86 cash per share. Use the financial statement effects template to record these two transactions.

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Rene Larsen · Answer 1

Balance Sheet

Details Assets = Equity + Liabilities

Cash + non_Cash = Capital + Earned

issued Capital

Preferred $2,450,000 + 0 = $700,000 + $1,750,000 + 0

stock issued

Common - $602,000 + 0 = - $7000 - $595,000 + 0

Stock

Explanation:

Asset CASH = Shares * share price

Capital Issued = Shares * Par value

Earned Capital = Asset Cash - Capital issued