Reference no: EM133169057

Question - Quick Fix-it Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the government authorized the following no par value shares:

Common shares, 200,000 shares.

Preferred shares, 50,000 shares.

During January and February of this year, the following transactions were completed:

a. Collected $80,000 cash from shareholders and issued 4,000 common shares.

b. Sold and issued 2,000 preferred shares at $25 per share; collected the cash.

c. Sold and issued 500 common shares to a new investor at $25 per share; collected the cash.

The company's operations resulted in net earnings of $40,000 for the year. The board of directors declared cash dividends of $25,000 that were paid at year-end. The preferred shares have a dividend rate of $1 per share.

Required - Prepare the shareholders' equity section of the statement of financial position at the end of the year.