Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter...

Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed:

a. Collected $169,000 cash and issued 13,000 shares of common stock.

b. Issued 11,500 shares of preferred stock at $23 per share; collected in cash.

Net income for the year was $43,000; cash dividends declared and paid at year-end were $12,000.

Required: Prepare the stockholders’ equity section of the balance sheet at December 31.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Witt Corporation received its charter during January of this year. The charter authorized the following stock:...

Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $13 par value, 22,400 shares authorized Common stock: $11 par value, 50,900 shares authorized During the year, the following transactions occurred in the order given: a. Issued a total of 39,000 shares of the common stock at $15 cash per share. b. Sold 6,800 shares of the preferred stock at $19 cash per share. c. Sold 4,100 shares of the...

Witt Corporation received its charter during January of this year. The charter authorized the following stock:...

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...

Witt Corporation received its charter during January of this year. The charter authorized the following stock:...

Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $11 par value, 21,900 shares authorized Common stock: $9 par value, 50,300 shares authorized During the year, the following transactions occurred in the order given: Issued 38,200 shares of the common stock for $13 per share. Sold 6,900 shares of the preferred stock for $17 per share. Sold 3,600 shares of the common stock for $16 per share and 2,100...

A central air conditioning unit was installed on January 1, 2000at an initial cost of...

A central air conditioning unit was installed on January 1, 2000 at an initial cost of P650,000 and was expected to have a salvage value of P50,000 after a life of 7 years. a. What amount of depreciation had accumulated in a sum-of-the-years’-digit method at the end of 2003? b. Using the declining balance method, determine the depreciation charged for 2004 and the book value at the end of 2004. c. If the equipment was sold on Jan 1, 2005...

Jack, a geologist, opened a business organized as a C corporation called Geo-Jack (GJ) in January...

Jack, a geologist, opened a business organized as a C corporation called Geo-Jack (GJ) in January of this year. Jack is the sole shareholder. Assume GJ reports on a calendar year and uses the accrual method of accounting. For each item below, indicate its effect on Jack’s taxable income and you must clearly indicate whether it is positive or negative. In January, GJ rented a small business office about 12 miles from Jack’s home. GJ paid $14,000, which represented a...

ack, a geologist, opened a business organized as a C corporation called Geo-Jack (GJ) in January...

ack, a geologist, opened a business organized as a C corporation called Geo-Jack (GJ) in January of this year. Jack is the sole shareholder. Assume GJ reports on a calendar year and uses the accrual method of accounting. For each item below, indicate its effect on Jack’s taxable income and you must clearly indicate whether it is positive or negative. (0.5 points each, 4 points total) In January, GJ rented a small business office about 12 miles from Jack’s home....

Jack, a geologist, opened a business organized as a C corporation called Geo-Jack (GJ) in January...

Jack, a geologist, opened a business organized as a C corporation called Geo-Jack (GJ) in January of this year. Jack is the sole shareholder. Assume GJ reports on a calendar year and uses the accrual method of accounting. For each item below, indicate its effect on Jack’s taxable income and you must clearly indicate whether it is positive or negative. In an attempt to get his name and new business recognized, GJ paid $9,000 for a one-page ad in the...

Key Family Heating and Air Conditioning Inc. employs Andy Clark and Frank John to make service...

Key Family Heating and Air Conditioning Inc. employs Andy Clark and Frank John to make service calls to repair furnaces and air-conditioning units in homes. A. Key, the owners would like to know whether there is a difference in the mean number of service calls they make per day. A random sample of 40 days last year showed the following: Days (n) Sample Mean Population Standard Deviation A. Clark 40 4.77 1.05 F. John 50 5.02 1.23 At the .05 significance...

Listed below are the financials for Baecker HVAC Air Conditioning who service provides local HVAC services...

Listed below are the financials for Baecker HVAC Air Conditioning who service provides local HVAC services in Southern California. The data appears as follows: Baecker HVAC Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 288,000 $ 189,663 Accounts receivable 126,000 191,000 Inventory 264,000 286,000 Plant and equipment (net) 442,000 450,000 Investment in Cedar Company 243,000 262,000 Land (undeveloped) 458,000 458,000 Total assets $ 1,821,000 $ 1,836,663 Liabilities and owners' equity: Accounts payable $ 252,000 $ 223,000...

On January 2, 2019, Royal Class Air Conditioning and Heating sold and installed an HVAC system...

On January 2, 2019, Royal Class Air Conditioning and Heating sold and installed an HVAC system to Peak Co. for $2,750. The selling price is allocated as follows: (1) 90% for the HVAC unit and (2) 10% for an ongoing 4-year service contract for the HVAC unit. a. Determine each of the following related to this sale: 1. Identify the contract between the company and the customer. 2. Identify the performance obligations of Royal Class. 3. Determine the transaction price....

Subjects