value: 11.00 points Inside Incorporated was issued a charter on January 15 autho

Question

value: 11.00 points Inside Incorporated was issued a charter on January 15 authorizing the following capital stock Common stock, $6 par, 100,000 shares, one vote per share. Preferred stock, 7 percent, par value $10 per share, 5,000 shares, nonvoting. The following selected transactions were completed during the first year of operations in the order given: a. Issued 19,000 shares of the $6 par common stock at $19 cash per share. b. Issued 2,900 shares of preferred stock at $23 cash per share c. At the end of the year, the accounts showed net income of $37,000 Required: 1. Prepare the stockholders' equity section of the balance sheet at December 31. INSIDE INCORPORATED Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital Total Contributed Capital

Explanation / Answer

a. common stock (19000*6) 114000 paid in capital in excess of par (19000*13) 247000 b. preferred stock (2900*10) 29000 paid in capital in excess of par (2900*13) 37700 Stockholder's Equity Contributed capital: preferred stock $10 par value ,5000 shares authorized 29,000 2900 shares issued and outstanding Common stock $6 par value,100,000 shares authorized 19,000 shares issued and outstanding 114,000 paid in capital in excess of par -PS 37,700 paid in capital in excess of par-TS 247,000 Total contributed capital 427,700 Add:Retained earnings 37,000 total stockholders Equity 464,700 Addittional preferred stock

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.