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Unformatted text preview: Common stock = 500($2) Common stock = $1,000 So, the total equity account is: Total equity = $1,000 + 250,000 + 750,000 Total equity = $1,001,000 b. The capital surplus on the sale of the new shares of stock is the price per share above par times the shares sold, or: Capital surplus on sale = ($30 2)(5,000) Capital surplus on sale = $140,000 So, the new equity accounts will be: Common stock, $2 par value 5,500 shares outstanding $ 11,000 Capital surplus 390,000 Retained earnings 750,000 Total $1,151,000...
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- Spring '09