Question

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 reportCommon stock Preferred stock Additional Paid-in capital$75,000 $15,000 $22,500$5,000 $37,500 $70,000$5,000 $15,000 $92,500$75,000 $37,000 $0

Answer 1

Answer:

Total of common stock = $5,000

Total of preferred stock = $15,000

Additional paid in capital  = $92,500

Explanation:

Common stock

5,000 × $1 = $5,000

Additional paid in capital  

5,000 × ($15 - $1)

=$70,000

Preferred stock

1500 × $10 = $15000

Additional paid in capital

= 1500 × ($25 - $10)

= $22,500

Total of common stock = $5,000

Total of preferred stock = $15,000

Additional paid in capital  = $92,500