Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed: Issued 5,700 shares of common stock for cash at $20 per share.Issued 1,700 shares of common stock for cash at $23 per share. Prepare the stockholders’ equity section as it should be reported on the year-end balance sheet. At year-end, the accounts reflected a profit of $200. Check my workyear, the following selected transactions were completed:a. Issued 5,700 shares of common stock for cash at $20 per share.b. Issued 1,700 shares of common stock for cash at $23 per share.3. Prepare the stockholders' equity section as it should be reported on the year-end balance sheet. At year-end, the accountsreflected a profit of $200.INCENTIVE CORPORATIONBalance Sheet (Partial)At December 31Stockholders' EquityContributed Capital:Total Contributed CapitalTotal Stockholders' Equity

Solution: stockholders’ equity section of incentive corporation is as under: Incentive Corporation Balance Sheet (Partial) At Dec 31 Stockholder's equity Contributed Capital: Common Stock $14,800.00 Paid in capital in excess of Par - Common Stock (5700*$18 + 1700*$21) $138,300.00 Total Contributed Capital $153,100.00 Retained Earnings $200.00 Total Stockholder's Equity $153,300.00

Answered: Incentive Corporation was authorized to…

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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Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed:

Issued 5,700 shares of common stock for cash at $20 per share.
Issued 1,700 shares of common stock for cash at $23 per share.

Prepare the stockholders’ equity section as it should be reported on the year-end balance sheet. At year-end, the accounts reflected a profit of $200.

Check my work
year, the following selected transactions were completed:
a. Issued 5,700 shares of common stock for cash at $20 per share.
b. Issued 1,700 shares of common stock for cash at $23 per share.
3. Prepare the stockholders' equity section as it should be reported on the year-end balance sheet. At year-end, the accounts
reflected a profit of $200.
INCENTIVE CORPORATION
Balance Sheet (Partial)
At December 31
Stockholders' Equity
Contributed Capital:
Total Contributed Capital
Total Stockholders' Equity

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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