On January 1, 2014, Dr. Beth Hill started a new professional corporation, Beth Hill, P.C., to practice medicine with an initial investment of $100,000 in exchange for 20,000 shares of $2 par value common stock. On June 30, 2014, the accounting records showed the following amounts:
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Accounts Payable
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$2,000
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Accounts Receivable
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$6,200
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Cash
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$48,100
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Common stock
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$ ?
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|
Additional paid-in capital
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$ ?
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Office Equipment
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$60,000
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Office Supplies
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$3,500
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Retained Earnings
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$5,800
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Notes Payable
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$10,000
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Requirement: 1. Calculate the amounts for common stock and additional paid-in capital. 2. Prepare a balance sheet as of June 30, 2014.