Reference no: EM131781660

Recording and reporting common and preferred stock transactions

Eastport Inc. was organized on June 5, 2016. It was authorized to issue 300,000 shares of $ 10 par common stock and 50,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $ 50 per share. The following stock transactions pertain to Eastport Inc.:

1- Issued 15,000 shares of common stock for $ 12 per share

2- Issued 5,000 shares of the class A preferred stock for $ 51 per share

3- Issued 60,000 shares of common stock for $ 15 per share

REQUIRED:

a) Prepare general journal entries of these transactions

b) Prepare the stockholders' equity section of the balance sheet immediatly after these transactions.