Maria Martinez organized Manhattan Transport Company in January 2018. The corporation immediately issued at $8 per share one- half of its 200,000 authorized shares of $2 par value common stock. On January 2, 2019, the corporation sold at par value the entire 5,000 authorized shares of 8 percent, $100 par value cumulative preferred stock. On January 2, 2020, the company again needed capital and issued 5,000 shares of an authorized 10,000 shares of no-par cumulative preferred stock for a total of $512,000. The no- par shares have a stated dividend of $9 per share. The company declared no dividends in 2018 and 2019. At the end of 2019, its retained earnings were $170,000. During 2020 and 2021 combined, the company earned a total of $890,000. Dividends of 50 cents per share in 2020 and $1.60 per share in 2021 were paid on the common stock. Required: Prepare the stockholders' equity section of the balance sheet at December 31, 2021. MANHATTAN TRANSPORT COMPANY Partial Balance Sheet December 31, 2021 Stockholders' equity Total paid-in capital Retained earnings Retained earnings at Dec. 31, 2019 Net income for four-year period Less: Dividends paid on 8% preferred stock: Less: Dividends on $9 preferred stock: Less: Dividends on common stock: Retained earnings, December 31, 2021 Total stockholders' equity
Maria Martinez organized Manhattan Transport Company in January 2018. The corporation immediately issued at $8 per share one- half of its 200,000 authorized shares of $2 par value common stock. On January 2, 2019, the corporation sold at par value the entire 5,000 authorized shares of 8 percent, $100 par value cumulative preferred stock. On January 2, 2020, the company again needed capital and issued 5,000 shares of an authorized 10,000 shares of no-par cumulative preferred stock for a total of $512,000. The no- par shares have a stated dividend of $9 per share. The company declared no dividends in 2018 and 2019. At the end of 2019, its retained earnings were $170,000. During 2020 and 2021 combined, the company earned a total of $890,000. Dividends of 50 cents per share in 2020 and $1.60 per share in 2021 were paid on the common stock. Required: Prepare the stockholders' equity section of the balance sheet at December 31, 2021. MANHATTAN TRANSPORT COMPANY Partial Balance Sheet December 31, 2021 Stockholders' equity Total paid-in capital Retained earnings Retained earnings at Dec. 31, 2019 Net income for four-year period Less: Dividends paid on 8% preferred stock: Less: Dividends on $9 preferred stock: Less: Dividends on common stock: Retained earnings, December 31, 2021 Total stockholders' equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Maria Martinez organized Manhattan Transport Company in January 2018. The corporation immediately issued at $8 per share one-
half of its 200,000 authorized shares of $2 par value common stock. On January 2, 2019, the corporation sold at par value the entire
5,000 authorized shares of 8 percent, $100 par value cumulative preferred stock. On January 2, 2020, the company again needed
capital and issued 5,000 shares of an authorized 10,000 shares of no-par cumulative preferred stock for a total of $512,000. The no-
par shares have a stated dividend of $9 per share.
The company declared no dividends in 2018 and 2019. At the end of 2019, its retained earnings were $170,000. During 2020 and 2021
combined, the company earned a total of $890,000. Dividends of 50 cents per share in 2020 and $1.60 per share in 2021 were paid
on the common stock.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31, 2021.
MANHATTAN TRANSPORT COMPANY
Partial Balance Sheet
December 31, 2021
Stockholders' equity
Total paid-in capital
Retained earnings
Retained earnings at Dec. 31, 2019
Net income for four-year period
Less: Dividends paid on 8% preferred stock:
Less: Dividends on $9 preferred stock:
Less: Dividends on common stock:
Retained earnings, December 31, 2021
Total stockholders' equity
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