In Draco Corporation's first year of business, the following transactions affected its equity accounts. • Issued 8,000 shares of $2 par value common stock for $58. It authorized 20,000 shares. • Issued 2,000 shares of 12%, $10 par value preferred stock for $63. It authorized 3,000 shares. Reacquired 400 shares of common stock for $70 each. • Retained earnings is impacted by reported net income of $90,000 and cash dividends of $35,000. Prepare the stockholders' equity section of Draco's balance sheet as of December 31. Note: Amounts to be deducted should be indicated by a minus sign. DRACO CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Total stockholders' equity $ 0

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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In Draco Corporation's first year of business, the following transactions affected its equity accounts.
• Issued 8,000 shares of $2 par value common stock for $58. It authorized 20,000 shares.
Issued 2,000 shares of 12%, $10 par value preferred stock for $63. It authorized 3,000 shares.
Reacquired 400 shares of common stock for $70 each.
Retained earnings is impacted by reported net income of $90,000 and cash dividends of $35,000.
Prepare the stockholders' equity section of Draco's balance sheet as of December 31.
Note: Amounts to be deducted should be indicated by a minus sign.
DRACO CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31
Total stockholders' equity
$
0
Transcribed Image Text:In Draco Corporation's first year of business, the following transactions affected its equity accounts. • Issued 8,000 shares of $2 par value common stock for $58. It authorized 20,000 shares. Issued 2,000 shares of 12%, $10 par value preferred stock for $63. It authorized 3,000 shares. Reacquired 400 shares of common stock for $70 each. Retained earnings is impacted by reported net income of $90,000 and cash dividends of $35,000. Prepare the stockholders' equity section of Draco's balance sheet as of December 31. Note: Amounts to be deducted should be indicated by a minus sign. DRACO CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Total stockholders' equity $ 0
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