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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Haresh
Transcribed Image Text: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.
Stockholders' equity
Contributed capital:
LUCAS COMPANY
Balance Sheet (Partial)
At December 31, This year
Common stock
Preferred stock
Additional paid-in capital, common stock
142,800
19,800
M....
n
st
***
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education