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16 November, 02:17

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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  1. 16 November, 02:40
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    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
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