Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $6 par value, 109,000 shares authorized Preferred stock, 13 percent, par value $7 per share, 4,300 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,200 shares of common stock at $14 cash per share. b. Sold and issued 2,500 shares of preferred stock at $18 cash per share. C. At the end of the year, the accounts showed net income of $41,100. No dividends were declared. Required: 1. Prepare the stockholders' equity section of the balance sheet at the end of the year.

Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $6 par value, 109,000 shares authorized Preferred stock, 13 percent, par value $7 per share, 4,300 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,200 shares of common stock at $14 cash per share. b. Sold and issued 2,500 shares of preferred stock at $18 cash per share. C. At the end of the year, the accounts showed net income of $41,100. No dividends were declared. Required: 1. Prepare the stockholders' equity section of the balance sheet at the end of the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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