FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Total paid-in capital Total stockholders' equity
FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Total paid-in capital Total stockholders' equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions
affect stockholders' equity during 2021, its first year of operations:
2 Issues 100,000 shares of common stock for $31 per share.
January
February 6 Issues 2,600 shares of 8% preferred stock for $12 per share.
September 10 Purchases 10,000 shares of its own common stock for $36 per share.
December 15 Resells 5,000 shares of treasury stock at $41 per share.
In its first year of operations, Finishing Touches has net income of $156,000 and pays dividends at the end of the year of $95,000 ($1
per share) on all common shares outstanding and $2,080 on all preferred shares outstanding.
Required:
Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be
deducted should be indicated by a minus sign.)
FINISHING TOUCHES
Balance Sheet
(Stockholders' Equity Section)
December 31, 2021
Stockholders' equity:
Total paid-in capital
Total stockholders' equity
2$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40af4702-0490-4dd6-b89f-83ddf43fab87%2Fa977c681-69d6-4d61-8021-eafccea7c34f%2Fu9g2ewv_processed.png&w=3840&q=75)
Transcribed Image Text:Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions
affect stockholders' equity during 2021, its first year of operations:
2 Issues 100,000 shares of common stock for $31 per share.
January
February 6 Issues 2,600 shares of 8% preferred stock for $12 per share.
September 10 Purchases 10,000 shares of its own common stock for $36 per share.
December 15 Resells 5,000 shares of treasury stock at $41 per share.
In its first year of operations, Finishing Touches has net income of $156,000 and pays dividends at the end of the year of $95,000 ($1
per share) on all common shares outstanding and $2,080 on all preferred shares outstanding.
Required:
Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be
deducted should be indicated by a minus sign.)
FINISHING TOUCHES
Balance Sheet
(Stockholders' Equity Section)
December 31, 2021
Stockholders' equity:
Total paid-in capital
Total stockholders' equity
2$
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