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Shelby Corporation was organized in January 2013 to operate anair conditioning sales and service business. The charter issued bythe state authorized the following capital stock:

Common stock, $1 parvalue, 200,000 shares.
Preferred stock, $10par value, 6 percent, 50,000 shares.
During January andFebruary 2013, the following stock transactions werecompleted:
a. Collected $841,000 cash andissued 29,000 shares of common stock.
b. Issued 19,500 shares ofpreferred stock at $39 per share; collected in cash.
Net income for 2013 was $59,000;cash dividends declared and paid at year-end were $10,000.
Required:

Prepare the stockholders’ equity section of the balance sheet atDecember 31, 2013.

This is what i have

Contributed capital

Preferred stock issued [19500*10] 195000

Additional preferred stock paid in capital [19500*29] 565500

Common stock issued [29000*1] 29000

Additional common stock paid in capital 812000

Total Contributed Capital 1601500

What are the retained earnings/net income

and the total stockholders equity?

Its not add: Net Income 59000

Less: dividends (10000)

I tried that and it didnt work. where am I going wronghere?

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Tod Thiel
Tod ThielLv2
28 Sep 2019

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