Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value. 6 percent. 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $484,000 cash and issued 22,000 shares of common stock. b. Issued 16,000 shares of preferred stock at $32 per share; collected in cash.
Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value. 6 percent. 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $484,000 cash and issued 22,000 shares of common stock. b. Issued 16,000 shares of preferred stock at $32 per share; collected in cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Contributed Capital:
SHELBY CORPORATION
Balance Sheet (Partial)
At December 31
Stockholders' Equity
Total Contributed Capital
Total Stockholders' Equity
![E11-4 (Algo) Reporting the Stockholders' Equity Section of the Balance Sheet [LO 11-2, LO 11-3, LO 11-4]
Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the
state authorized the following capital stock:
Common stock, $1 par value, 200,000 shares.
Preferred stock, $10 par value. 6 percent, 50,000 shares.
During January and February, the following stock transactions were completed:
a. Collected $484,000 cash and issued 22,000 shares of common stock.
b. Issued 16,000 shares of preferred stock at $32 per share; collected in cash.
Net income for the year was $52,000; cash dividends declared and paid at year-end were $12,000.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31. (Helpful tool: Record Journal Entries for each (A-D)
transaction before attempting to complete the balance sheet below)
SHELBY CORPORATION](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff82bd74-7bba-4dcc-8299-a8c651f43e1b%2F9bdd1500-9cb0-47cb-affb-001166bbd05d%2F73ns23_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E11-4 (Algo) Reporting the Stockholders' Equity Section of the Balance Sheet [LO 11-2, LO 11-3, LO 11-4]
Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the
state authorized the following capital stock:
Common stock, $1 par value, 200,000 shares.
Preferred stock, $10 par value. 6 percent, 50,000 shares.
During January and February, the following stock transactions were completed:
a. Collected $484,000 cash and issued 22,000 shares of common stock.
b. Issued 16,000 shares of preferred stock at $32 per share; collected in cash.
Net income for the year was $52,000; cash dividends declared and paid at year-end were $12,000.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31. (Helpful tool: Record Journal Entries for each (A-D)
transaction before attempting to complete the balance sheet below)
SHELBY CORPORATION
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