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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 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
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' equity:
Total paid-in capital
Total stockholders' equity
%24
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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