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Question - Preparing stockholders' equity section - In Draco Corporation's ?rst year of business, the following transactions affected its equity accounts.
Issued 4,400 shares of $2 par value common stock for $22. It authorized 20,000 shares.
Issued 1,100 shares of 12%, $10 par value preferred stock for $27. It authorized 3,000 shares.
Reacquired 220 shares of common stock for $34 each.
Retained earnings is impacted by reported net income of $54,000 and cash dividends of $17,000.
Required - Prepare the stockholders' equity section of Draco's balance sheet as of December 31.
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