E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: a. Issued a total of 40,000 shares of the common stock for $15 per share. b. C. d. Issued 10,000 shares of the preferred stock at $16 per share. Issued 3,000 shares of the common stock at $20 per share and 1,000 shares of the preferred stock at $16. Net income for the first year was $48,000, but no dividends were declared. Required: Prepare the stockholders' equity section of the balance sheet at December 31.
E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: a. Issued a total of 40,000 shares of the common stock for $15 per share. b. C. d. Issued 10,000 shares of the preferred stock at $16 per share. Issued 3,000 shares of the common stock at $20 per share and 1,000 shares of the preferred stock at $16. Net income for the first year was $48,000, but no dividends were declared. Required: Prepare the stockholders' equity section of the balance sheet at December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet
North Wind Aviation received its charter during January authorizing the following capital stock:
Preferred stock: 8 percent, par $10, authorized 20,000 shares.
Common stock: par $1, authorized 50,000 shares.
The following transactions occurred during the first year of operations in the order given:
a. Issued a total of 40,000 shares of the common stock for $15 per share.
b. Issued 10,000 shares of the preferred stock at $16 per share.
C.
Issued 3,000 shares of the common stock at $20 per share and 1,000 shares of the preferred
stock at $16.
Net income for the first year was $48,000, but no dividends were declared.
d.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31.
LO 11
ARE](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f980526-2571-439e-8d29-7976a42cd1e1%2F22409c0e-3a5c-4f23-b2b7-4ea7d0c4e0d5%2Flwwadgv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet
North Wind Aviation received its charter during January authorizing the following capital stock:
Preferred stock: 8 percent, par $10, authorized 20,000 shares.
Common stock: par $1, authorized 50,000 shares.
The following transactions occurred during the first year of operations in the order given:
a. Issued a total of 40,000 shares of the common stock for $15 per share.
b. Issued 10,000 shares of the preferred stock at $16 per share.
C.
Issued 3,000 shares of the common stock at $20 per share and 1,000 shares of the preferred
stock at $16.
Net income for the first year was $48,000, but no dividends were declared.
d.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31.
LO 11
ARE
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