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27 February, 00:44

CPA Question 01 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 repor

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  1. 27 February, 00:57
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    The computation is shown below:

    Common stock Preferred stock Additional paid in capital

    Common stock $5,000 $70,000

    Preferred stock $15,000 $22,500

    Total $5,000 $15,000 $92,500

    The computation is shown below:

    The common stock is

    = 5,000 shares * $1

    = $5,000

    The additional paid in capital is

    = 5,000 * ($15 - $1)

    = $70,000

    Preferred stock

    = 1,500 shares * $10

    = $15,000

    The additional paid in capital is

    = 1,500 shares ($25 - $10)

    = $22,500
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