For Feet's Sake has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issues 100,000 shares of common stock for $27 per share. Issues 2,200 shares of 7% preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $32 per share. December 15 Resells 6,000 shares of treasury stock at $37 per share. February 6 In its first year of operations, For Feet's Sake has net income of $152,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,540 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for For Feet's Sake as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) FOR FEET'S SAKE Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' equity: Common stock Preferred stock Additional paid-in capital Total paid-in capital Retained earnings Treasury stock $ 100,000 100.000 56,460
For Feet's Sake has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issues 100,000 shares of common stock for $27 per share. Issues 2,200 shares of 7% preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $32 per share. December 15 Resells 6,000 shares of treasury stock at $37 per share. February 6 In its first year of operations, For Feet's Sake has net income of $152,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,540 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for For Feet's Sake as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) FOR FEET'S SAKE Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' equity: Common stock Preferred stock Additional paid-in capital Total paid-in capital Retained earnings Treasury stock $ 100,000 100.000 56,460
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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subject-Accounting
Transcribed Image Text:For Feet's Sake has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect
stockholders' equity during 2024, its first year of operations:
January 201 Issues 100,000 shares of common stock for $27 per share.
February 6 Issues 2,200 shares of 7% preferred stock for $13 per share.
September 10 Purchases 12,000 shares of its own common stock for $32 per share..
December 15 Resells 6,000 shares of treasury stock at $37 per share.
In its first year of operations, For Feet's Sake has net income of $152,000 and pays dividends at the end of the year of $94,000 ($1 per
share) on all common shares outstanding and $1,540 on all preferred shares outstanding.
Required:
Prepare the stockholders' equity section of the balance sheet for For Feet's Sake as of December 31, 2024. (Amounts to be deducted
should be indicated by a minus sign.)
FOR FEET'S SAKE
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' equity:
Common stock
Preferred stock
Additional paid-in capital
Total paid-in capital
Retained earnings
Treasury stock
$
100,000
100.000
56,460
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