Question

Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $11 par value, 22,700 shares authorized Common stock: $9 par value, 50,500 shares authorized During the year, the following transactions occurred in the order given: a. Issued a total of 39,800 shares of the common stock at $13 cash per share. b. Sold 7,500 shares of the preferred stock at $17 cash per share. c. Sold 3,300 shares of the common stock at $16 cash per share and 1,800 shares of the preferred stock at $27 cash per share. d. Net income for the year was $65,000. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. Use exact numbers please

Answer 1

Stockholder's Equity		Amount
Authorized Capital
Preferred Stock , 10%		$        249,700
Common Stock		$        454,500
		$        704,200
Paid - in Capital
Preferred Stock , 10%	(7500 + 1800)	$        102,300
Common Stock	(39800 + 3300)	$        387,900
Paid in Capital in excess of par value - Preferred Stock	(6 + 16) * 9300	$        204,600
Paid in Capital in excess of par value - Common Stock	(4 + 7) * 43100	$        474,100
Retained Earnings for the year ended		$          65,000
Total Stockholder's Equity		$    1,233,900