At the beginning of the year, The Mann Corporation, a private entity, decided to go public.
A charter of incorporation was constructed which authorized the sale of 10 million shares of $8 par value common stock, 100,000 shares of $800 par value, 8% preferred stock, and 200,000 shares of $40 no-par-value convertible preferred stock.
The following shares were sold as part of the firm's initial public offering:
* 1,000,000 shares of common stock at $80 per share.
* 100,000 shares of $800 par value, 8% preferred stock at $840 per share.
* 100,000 shares of $40 convertible, no-par preferred stock at $440 per share.
At year-end, the full dividend was declared and paid on both preferred stock offerings.
Required
Using a spreadsheet, record the financial effects of the shareholders' equity transactions for The Mann Corporation for the year.
Enter amounts in thousands (i.e., $10,000,000 = $10,000). Use a negative sign with answers to indicate a reduction in an account balance.
The Mann Corporation
Transaction (in thousands)
Common
Shares IPO
8% Preferred
IPO
No-par
Preferred IPO
8% Preferred
Dividend No-par
Preferred
Dividend Balance
Sheet
Totals
Assets
Cash $Answer $Answer $Answer $Answer $Answer $Answer
Shareholders' Equity
Common Stock Answer Answer Answer Answer Answer Answer
APIC - Common Answer Answer Answer Answer Answer Answer
$100 Preferred Stock Answer Answer Answer Answer Answer Answer
APIC-Preferred Answer Answer Answer Answer Answer Answer
$5 Conv. Preferred Answer Answer Answer Answer Answer Answer
Retained Earnings Answer Answer Answer Answer Answer Answer
Total Shareholders' Equity