A company has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1, its first year of operations: January 2 Issues 100,000 shares of common stock for $33 per share. February 6 Issues 2,800 shares of 7% preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $38 per share. December 15 Resells 6,000 shares of treasury stock at $43 per share. In its first year of operations, the company has net income of $158,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,960 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1.
A company has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1, its first year of operations: January 2 Issues 100,000 shares of common stock for $33 per share. February 6 Issues 2,800 shares of 7% preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $38 per share. December 15 Resells 6,000 shares of treasury stock at $43 per share. In its first year of operations, the company has net income of $158,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,960 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect
| January | 2 | Issues 100,000 shares of common stock for $33 per share. | ||
| February | 6 | Issues 2,800 shares of 7% preferred stock for $13 per share. | ||
| September | 10 | Purchases 12,000 shares of its own common stock for $38 per share. | ||
| December | 15 | Resells 6,000 shares of |
In its first year of operations, the company has net income of $158,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,960 on all
Required:
Prepare the stockholders' equity section of the
Transcribed Image Text:Balance Sheet
(Stockholders' Equity Section)
December 31, Year 1
Stockholders' equity:
Total paid-in capital
Total stockholders' equity
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