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Instruction: Use the tabs above to navigate back and forth between sections. Flanagan Corporation authorized to 1ssue 1,000 shares of 996 preferred stock at a par value of $20 per share end 50,000 shares of common stock with a par value of $2 per share. Flannagan Corporation issued 200 shares of preferred stock at $22 per share and 20,000 shares of common stock for $2.50 per share. How much did Flannagan Corporation raise through their stock issuance? What does the balance sheet look like after the stock is issued? To answer this question, fill in the partial balance sheet that follows.
Expert Answer
Amount raised through stock issuance : [200*22]preferred stock +[20000*2.5]common stock
= 4400+ 50000
= $ 54,400
b)
| Balancesheet for the year ended 31 december 2013 | ||
| stockholders equity | ||
| preferred 9% stock $20 par,1000 shares authorized,200 shares issued and outstanding [200*20] | 4000 | |
| common stock $ 2 par,50000shares authorized,20000 shares issued and outstanding [20000*2] | 40000 | |
| Additional paid in capital | ||
| preferred stock [200*2] | 400 | |
| common stock [20000*.5] | 10000 | 10400 |
| Total capital stock | 54400 | |
**paid in capital is credit with issue price -par value
preferred stock : 22-20 =2 per share
common stock :2.5-2 =.50 per share
