The Golden Mushroom has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issues 100,000 shares of common stock for $16 per share. February 6 Issues 1,100 shares of 9% preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $21 per share. December 15 Resells 5,500 shares of treasury stock at $26 per share. In its first year of operations, The Golden Mushroom has net income of $141,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $990 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for The Golden Mushroom as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)
The Golden Mushroom has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issues 100,000 shares of common stock for $16 per share. February 6 Issues 1,100 shares of 9% preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $21 per share. December 15 Resells 5,500 shares of treasury stock at $26 per share. In its first year of operations, The Golden Mushroom has net income of $141,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $990 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for The Golden Mushroom as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Golden Mushroom has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect
| January 2 | Issues 100,000 shares of common stock for $16 per share. |
|---|---|
| February 6 | Issues 1,100 shares of 9% preferred stock for $11 per share. |
| September 10 | Purchases 11,000 shares of its own common stock for $21 per share. |
| December 15 | Resells 5,500 shares of |
In its first year of operations, The Golden Mushroom has net income of $141,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $990 on all
Required:
Prepare the stockholders' equity section of the
Transcribed Image Text:THE GOLDEN MUSHROOM
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' equity:
Total paid-in capital
Total stockholders' equity
%24
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