In Draco Corporation's first year of business, the following transactions affected its equity accounts. • Issued 7,800 shares of $2 par value common stock for $56. It authorized 20,000 shares. • Issued 1,950 shares of 12%, $10 par value preferred stock for $61. It authorized 3,000 shares. Reacquired 390 shares of common stock for $68 each. ● Retained earnings is impacted by reported net income of $88,000 and cash dividends of $34,000. ● 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

In Draco Corporation's first year of business, the following transactions affected its equity accounts. • Issued 7,800 shares of $2 par value common stock for $56. It authorized 20,000 shares. • Issued 1,950 shares of 12%, $10 par value preferred stock for $61. It authorized 3,000 shares. Reacquired 390 shares of common stock for $68 each. ● Retained earnings is impacted by reported net income of $88,000 and cash dividends of $34,000. ● 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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Description: In Draco Corporation's first year of business, the following transactions affected its equity accounts:- Issued 7,800 shares of $2 par value common stock for $56. It authorized 20,000 shares.- Issued 1,950 shares of 12%, $10 par value preferred stoc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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