Lucas Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $7 par value, 104,000 shares authorized Preferred stock, 14 percent, par value $9 per share, 4,200 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 20,400 shares of common stock at $18 cash per share. b. Sold and issued 2,200 shares of preferred stock at $22 cash per share. c. At the end of the year, the company reported net income of $40,100. No dividends were declared. Required: 1. Prepare the stockholders' equity section of the balance sheet at the end of the year.

Lucas Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $7 par value, 104,000 shares authorized Preferred stock, 14 percent, par value $9 per share, 4,200 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 20,400 shares of common stock at $18 cash per share. b. Sold and issued 2,200 shares of preferred stock at $22 cash per share. c. At the end of the year, the company reported net income of $40,100. No dividends were declared. Required: 1. Prepare the stockholders' equity section of the balance sheet at the end of the year.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 5PA: Copper Corporation was organized in May. It is authorized to issue 50,000,000 shares of $200 par...

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