t htm work E11-3 Preparing the Stockholders\' Equity Section of the Balance Shee

Question

t htm work E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet LO 11-2, LO 11-4 North Wind Aviation receved its charter during January authorizing the following capital stock Preferred stock: 8 percent, par $1e, author i zed 20,000 shares Conmon stock: par $1, authorized 5,000 shares The following transections occurred during the first year of operations in the order given a Issued a total of 43,000 shares of the common stock for $18 per share b Issued 10000 shares of the preferred stock at $19 per share c Issued 3.300 shares of the common stock at $23 per share and 1,000 shares of the preferred stock at $19 d Net income for the first yeer wes $51,000, but no dividends were declared Required: Prepare the stockholders equity section of the balance sheet et December 3 1 Balance Sheet (Partial) Stoekholders' Equity Contibuted Capital Total Contributed Capital

Explanation / Answer

Stockholder's equity: Contributed capital 46300 common shares issued par of $ 1 per share 46300 11000 Preferred share issued Par value $ 10 per share 110000 Paid in capital in excess of par-Common (43000*17+3300*22) 803600 Paid in capital in excess of par-Preferred (11000*9) 99000 Total Contributed capital 1058900 Retained earnings 51000 Total Stockholder's equity 1109900

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