Witt Corporation received its charter during January of this year. The charter a

Question

Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $12 par value, 21,900 shares authorized Common stock: $10 par value, 51,700 shares authorized During the year, the following transactions occurred in the order given: a. Issued a total of 38,300 shares of the common stock at $14 cash per share. b. Sold 5,800 shares of the preferred stock at $18 cash per share. c. Sold 4,800 shares of the common stock at $17 cash per share and 2,900 shares of the preferred stock at $28 cash per share. d. Net income for the year was $62,000. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. WITT CORPORATION Balance Sheet (Partial) At December 31, This year Stockholders' equity: Contributed capital Total contributed capital Total stockholders' equity

Explanation / Answer

WITT CORPORATION Balance Sheet (Partial) At December 31,This Year Stockholders Equity Contributed Capital Common stock,$10 Par Value,51700 shares Authorised,43100 shares Issued $431,000.00 10% Preferred stock, $12 Par Value,21900 shares Authorised,8700 shares Issued $104,400.00 Additional Paid In Capital - Common Stock $186,800.00 Additional Paid In Capital - Preferred Stock $81,200.00 Total Contributed Capital $803,400.00 Retained Earnings $62,000.00 Total Stockholders Equity $865,400.00

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