Quick Fix-It Corporation was organized at the beginning of this year to operate

Question

Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock, $14 par value, 99,300 shares authorized Preferred stock, $48 par value, 8 percent, 60,000 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 79,400 shares of common stock at $28 cash per share. b. Sold 21,100 shares of preferred stock at $76 cash per share. c. Bought 5,300 shares of common stock from a current stockholder for $13 cash per share. Required: Net income for the year was $90,400; cash dividends declared and paid at year-end were $30,300. Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.) QUICK FIX-IT CORPORATION Balance Sheet (Partial) At December 31, This year Stockholders' equity: Contributed Capital: Total contributed capital Total contributed capital and retained earnings Total stockholders' equity

Explanation / Answer

Stockholder's equity Section :

Stockholder' equity Contributed capital Common Stock 1111600 paid in capital in excess of par value-Common Stock 1111600 Preferred Stock 1012800 paid in capital in excess of par value-Preferred Stock 590800 Total Contributed capital 3826800 Retained earnings 60100 Total Contributed capital and retained earnings 3886900 Less; Treasury Stock -68900 Total Stockholder's equity 3818000

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