Draco Corporation's first year of business, the following transactions affected its equity accounts. -Issued 4,200 shares...

Draco Corporation's first year of business, the following transactions affected its equity accounts.

-Issued 4,200 shares of $2 par value common stock for $20. It authorized 20,000 shares.

-Issued 1,050 shares of 12%, $10 par value preferred stock for $25. It authorized 3,000 shares.

-Reacquired 210 shares of common stock for $32 each.

-Retained earnings is impacted by reporting net income of $52,000 and cash dividends of $16,000.

Prepare the stockholders' equity section of Draco's balance sheet as of December 31.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

For each of the following transactions, indicate the accounts affected and whether the accounts affected are...

For each of the following transactions, indicate the accounts affected and whether the accounts affected are an asset, a liability, an equity, an income or an expense. Also indicate whether the accounts are being increased or decreased and whether the increase or decrease is a debit or credit. Ignore GST. 1. Owner gave their personal computer to the business. 2. Employed a secretary. 3. Purchased supplies on credit. 4. Paid a creditor using an electronic transfer. 5. Invoiced a customer...

Choctaw Co. completed the following transactions in 2018, the first year of operation: Issued 31,000 shares...

Choctaw Co. completed the following transactions in 2018, the first year of operation: Issued 31,000 shares of $10 par common stock for $10 per share. Issued 4,100 shares of $20 stated value preferred stock for $20 per share. Purchased 2,100 shares of common stock as treasury stock for $12 per share. Declared a $3,100 cash dividend on preferred stock. Sold 800 shares of treasury stock for $14 per share. Paid $3,100 cash for the preferred dividend declared in Event 4....

Choctaw Co. completed the following transactions in 2018, the first year of operation: Issued 28,000 shares...

Choctaw Co. completed the following transactions in 2018, the first year of operation: Issued 28,000 shares of $10 par common stock for $10 per share. Issued 3,800 shares of $20 stated value preferred stock for $20 per share. Purchased 1,800 shares of common stock as treasury stock for $12 per share. Declared a $2,800 cash dividend on preferred stock. Sold 800 shares of treasury stock for $14 per share. Paid $2,800 cash for the preferred dividend declared in Event 4....

Nichols Inc. has the following transactions impacting its equity accounts during 2018. The number of shares of...

Nichols Inc. has the following transactions impacting its equity accounts during 2018. The number of shares of $1 par value common stock authorized is 50,000,000 and the number of shares outstanding as of January 1, 2018 is 20,000,000. The company also has 10,000 shares of 6% preferred stock with $100 par value authorized and outstanding at the beginning of the year. The preferred stock may be converted into 10 shares of common stock and was originally issued for $110 per share. Please record...

The following transactions apply to Hooper Co. for Year 1, its first year of operations: Issued...

The following transactions apply to Hooper Co. for Year 1, its first year of operations: Issued $170,000 of common stock for cash. Provided $96,000 of services on account. Collected $84,000 cash from accounts receivable. Loaned $11,000 to Mosby Co. on November 30, Year 1. The note had a one-year term to maturity and a 6 percent interest rate. Paid $44,000 of salaries expense for the year. Paid a $3,000 dividend to the stockholders. Recorded the accrued interest on December 31,...

The following transactions apply to Hooper Co. for Year 1, its first year of operations: Issued...

The following transactions apply to Hooper Co. for Year 1, its first year of operations: Issued $130,000 of common stock for cash. Provided $104,000 of services on account. Collected $90,000 cash from accounts receivable. Loaned $13,000 to Mosby Co. on November 30, Year 1. The note had a one-year term to maturity and a 8 percent interest rate. Paid $46,000 of salaries expense for the year. Paid a $3,500 dividend to the stockholders. Recorded the accrued interest on December 31,...

Howard Inc. reports the following transactions relating to its stock accounts. Jan 1 Issued 40,000 shares...

Howard Inc. reports the following transactions relating to its stock accounts. Jan 1 Issued 40,000 shares of $8 par value common stock at $20 each per share. Mar 5 Issued 8,000 shares of $35 par value, 6% preferred stock at $50 cash per share. June 15 Purchased 7,000 shares of its own common stock at $18 cash per share. Aug 4 Sold 6,500 shares of the treasury stock at $28 cash per share. Sep 15 Declared a 5% common...

Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common...

Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $110,000 cash. Purchased $200,000 of merchandise on account. Sold merchandise that cost $160,000 for $318,000 on account. Collected $278,000 cash from accounts receivable. Paid $180,000 on accounts payable. Paid $60,000 of salaries expense for the year. Paid other operating expenses of $76,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount...

Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common...

Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $90,000 cash. Purchased $195,000 of merchandise on account. Sold merchandise that cost $162,000 for $322,000 on account. Collected $292,000 cash from accounts receivable. Paid $175,000 on accounts payable. Paid $66,000 of salaries expense for the year. Paid other operating expenses of $82,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount...

Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common...

Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $120,000 cash. Purchased $200,000 of merchandise on account. Sold merchandise that cost $154,000 for $306,000 on account. Collected $274,000 cash from accounts receivable. Paid $180,000 on accounts payable. Paid $56,000 of salaries expense for the year. Paid other operating expenses of $72,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount...

Subjects