E11-9 (Algo) Determining the Effects of Transactions on Stockholders' Equity LO11-1, 11-3, 11-7, 11-8 Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued b the state authorized the following stock: Common stock, $12 par value, 99,500 shares authorized Preferred stock, $44 par value, 8 percent, 59,100 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 78,900 shares of common stock at $24 cash per share. b. Sold 21,000 shares of preferred stock at $60 cash per share. c. Repurchased 4,500 shares of common stock for $15 cash per share. Required: Net Income for the year was $91,100; cash dividends declared and paid at year- end were $30,700. Prepare the stockholders' equity section of the balance shee at the end of the year. Note: Amounts to be deducted should be Indicated with a minus sign.
E11-9 (Algo) Determining the Effects of Transactions on Stockholders' Equity LO11-1, 11-3, 11-7, 11-8 Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued b the state authorized the following stock: Common stock, $12 par value, 99,500 shares authorized Preferred stock, $44 par value, 8 percent, 59,100 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 78,900 shares of common stock at $24 cash per share. b. Sold 21,000 shares of preferred stock at $60 cash per share. c. Repurchased 4,500 shares of common stock for $15 cash per share. Required: Net Income for the year was $91,100; cash dividends declared and paid at year- end were $30,700. Prepare the stockholders' equity section of the balance shee at the end of the year. Note: Amounts to be deducted should be Indicated with a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:E11-9 (Algo) Determining the Effects of Transactions on
Stockholders' Equity LO11-1, 11-3, 11-7, 11-8
Quick Fix-It Corporation was organized at the beginning of this year to operate
several car repair businesses in a large metropolitan area. The charter issued by
the state authorized the following stock:
Common stock, $12 par value, 99,500 shares authorized
Preferred stock, $44 par value, 8 percent, 59,100 shares authorized
During January and February of this year, the following stock transactions were
completed:
a. Sold 78,900 shares of common stock at $24 cash per share.
b. Sold 21,000 shares of preferred stock at $60 cash per share.
c. Repurchased 4,500 shares of common stock for $15 cash per share.
Required:
Net Income for the year was $91,100; cash dividends declared and paid at year-
end were $30,700. Prepare the stockholders' equity section of the balance sheet
at the end of the year.
Note: Amounts to be deducted should be Indicated with a minus sign.
QUICK FIX-IT CORPORATION
Balance Sheet (Partial)
At December 31
Stockholders' equity:
Contributed capital:
Common stock
Preferred stock
Additional paid-in capital, common stock
Additional paid-in capital, preferred stock
Total contributed capital
Retained earnings
Treasury stock
$
946,800
924,000
946,800
$ 2,817,600
60,400
(67,500)
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