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28 Sep 2019
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 stockholdersâ 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?
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 stockholdersâ 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? |
Tod ThielLv2
28 Sep 2019
