Prepare the stockholders’ equity section of the balance sheet for Wiley Corporation on December 31, 2021. Assume that net income for the year was $1,100,000. Wiley CorporationBalance Sheet (partial)At December 31, 2020Stockholders' EquityPaid-in CapitalCommon Stock, $8 par value, 3,000,000 shares authorized,$10,160,0001,270,000 issued and outstandingPaid-in Capital in Excess of Par- Common Stock$3,810,000Total Paid-in Capital$13,970,000Retained Earnings$8,200,000Total Stockholders’ Equity$22,170,000The following transactions occurred throughout 2021:Jan 4Issued 170,000 shares of common stock at $17 per shareFeb 23Issued 190,000 shares of stock for land. The land had an asking price of$1,700,000. The stocks were being traded at $20 per share at the stockexchangeMay 16 Issued 320,000 shares of common stock at $15 per shareAug 22Issued 250,000 shares of common stock for office building. The fair valueof office building was $4,750,000Sept 22Issued 75,000 shares of common stock at $22 per shareDec 12Attorneys for the company accepted 8,500 shares of common stock aspayment for legal expense. The legal expense had a value of $87,000Instructions:b) Prepare the stockholders' equity section of the balance sheet for WileyCorporation on December 31, 2021. Assume that net income for the year was$1,100,000.

Shareholders’ Equity is a part of Balance sheet that is shown under Equity & Liabilities side.…

Answered: Prepare the stockholders’ equity…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Prepare the stockholders’ equity section of the balance sheet for Wiley Corporation on December 31, 2021. Assume that net income for the year was $1,100,000.

Wiley Corporation
Balance Sheet (partial)
At December 31, 2020
Stockholders' Equity
Paid-in Capital
Common Stock, $8 par value, 3,000,000 shares authorized,
$10,160,000
1,270,000 issued and outstanding
Paid-in Capital in Excess of Par- Common Stock
$3,810,000
Total Paid-in Capital
$13,970,000
Retained Earnings
$8,200,000
Total Stockholders’ Equity
$22,170,000
The following transactions occurred throughout 2021:
Jan 4
Issued 170,000 shares of common stock at $17 per share
Feb 23
Issued 190,000 shares of stock for land. The land had an asking price of
$1,700,000. The stocks were being traded at $20 per share at the stock
exchange
May 16 Issued 320,000 shares of common stock at $15 per share
Aug 22
Issued 250,000 shares of common stock for office building. The fair value
of office building was $4,750,000
Sept 22
Issued 75,000 shares of common stock at $22 per share
Dec 12
Attorneys for the company accepted 8,500 shares of common stock as
payment for legal expense. The legal expense had a value of $87,000
Instructions:
b) Prepare the stockholders' equity section of the balance sheet for Wiley
Corporation on December 31, 2021. Assume that net income for the year was
$1,100,000.

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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