Inside Incorporated was issued a charter on January 15 authorizing the following capital stock: Common stock, $6 par, 100,000 shares, one vote per share. Preferred stock, 7 percent, par value $10 per share, 5,000 shares, nonvoting. The following selected transactions were completed during the first year of operations in the order given: Issued 21,000 shares of the $6 par common stock at $19 cash per share. Issued 3,100 shares of preferred stock at $23 cash per share. At the end of the year, the accounts showed net income of $39,000. Required: Prepare the stockholders’ equity section of the balance sheet at December 31.
Inside Incorporated was issued a charter on January 15 authorizing the following capital stock: Common stock, $6 par, 100,000 shares, one vote per share. Preferred stock, 7 percent, par value $10 per share, 5,000 shares, nonvoting. The following selected transactions were completed during the first year of operations in the order given: Issued 21,000 shares of the $6 par common stock at $19 cash per share. Issued 3,100 shares of preferred stock at $23 cash per share. At the end of the year, the accounts showed net income of $39,000. Required: Prepare the stockholders’ equity section of the balance sheet at December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Inside Incorporated was issued a charter on January 15 authorizing the following capital stock:
| Common stock, $6 par, 100,000 shares, one vote per share. |
The following selected transactions were completed during the first year of operations in the order given:
- Issued 21,000 shares of the $6 par common stock at $19 cash per share.
- Issued 3,100 shares of preferred stock at $23 cash per share.
- At the end of the year, the accounts showed net income of $39,000.
Required:
- Prepare the
stockholders’ equity section of thebalance sheet at December 31.
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