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The Eastern Spruce equity accounts

The Eastern Spruce equity accounts for last year are as follows:

Common stock, $2 par value 500 shares outstanding ?
Capital surplus $250,000
Retained earnings $750,000
Total ?

a. What are the common stock and total equity values for the equity account?

b. The company has decided to issue 5,000 shares of stock at a price of $30 per share. Show the effects of the new issue on the equity accounts.

Solution Preview

The Eastern Spruce equity accounts for last year are as follows:

Common stock, $2 par value 500 shares outstanding $1,000
Capital surplus $250,000
Retained earnings $750,000
Total ...

Solution Summary

This solution is comprised of a detailed explanation to answer what are common stock and total equity values.

$2.19