South Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: 1. Issued a total of 34,000 shares of the common stock for $14 per share. 2. Issued 11,000 shares of the preferred stock at $15 per share. 3. Issued 2,400 shares of the common stock at $19 per share and 1,100 shares of the preferred stock at $15. 4. Net income for the first year was $42,000, but no dividends were declared. Required: Prepare the stockholders' equity section of the balance sheet at December 31.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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South Wind Aviation received its charter during January authorizing the following capital stock:
Preferred stock: 8 percent, par $10, authorized 20,000 shares.
Common stock: par $1, authorized 50,000 shares.
The following transactions occurred during the first year of operations in the order given:
1. Issued a total of 34,000 shares of the common stock for $14 per share.
2. Issued 11,000 shares of the preferred stock at $15 per share.
3. Issued 2,400 shares of the common stock at $19 per share and 1,100 shares of the preferred stock at $15.
4. Net income for the first year was $42,000, but no dividends were declared.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31.
Transcribed Image Text:South Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: 1. Issued a total of 34,000 shares of the common stock for $14 per share. 2. Issued 11,000 shares of the preferred stock at $15 per share. 3. Issued 2,400 shares of the common stock at $19 per share and 1,100 shares of the preferred stock at $15. 4. Net income for the first year was $42,000, but no dividends were declared. Required: Prepare the stockholders' equity section of the balance sheet at December 31.
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