Organize the stockholder equity section of the balance sheet

Assignment Help Accounting Basics

Reference no: EM131975683

Problem

Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock:

Common stock, $1 par value, 200,000 shares.
Preferred stock, $10 par value, 6 percent, 50,000 shares.

During January and February, the following stock transactions were completed:

a. Collected $729,000 cash and issued 27,000 shares of common stock.

b. Issued 18,500 shares of preferred stock at $37 per share; collected in cash.

Net income for the year was $57,000; cash dividends declared and paid at year-end were $11,000.

Required:

Prepare the stockholders' equity section of the balance sheet at December 31.

Reference no: EM131975683

Questions Cloud

What is the value that groupon provides to consumers : In addition to the four elements of the marketing mix, the representatives from Groupon suggest that word of mouth is the most powerful force in a successful.

How much cost would be allocated to each division for june : How much cafeteria cost should be charged to each division for June? How much cost would be allocated to each division for June?

What is sheila''s adjusted gross income for the current year : Sheila, age 70, is single and an officer of Vista corporation. What is Sheila's adjusted gross income for the current year?

Correct amount of food and supplements : How would you ensure that you were giving an animal the correct amount of food and supplements.

Organize the stockholder equity section of the balance sheet : Shelby Corporation was organized in January to operate an air-conditioning sales. Organize the stockholders' equity section of the balance sheet at December 31.

Feed and water animals : How would you determine if an animal's food and water supplies are being maintained in accordance with their feeding plan

How can we best prepare to adapt to change in a market : One issue with emerging markets is that they are often in a situation where they have rapid change. How can we best prepare to adapt to change in a market?

What are the implications of existing patents : What are the implications of existing patents and how might they could affect bringing a product to market?

What position does a company have : What position does a company have? How to make business plan about the human resources requirement?

User Account

All Pages