E11-3 Preparing the Stockholders Equity Section of the Balance Sheet LO 112, LO

Question

E11-3 Preparing the Stockholders Equity Section of the Balance Sheet LO 112, LO 114] North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: a. Issued a total of 34,000 shares of the common stock for $14 per share. b. Issued 11,000 shares of the preferred stock at $15 per share c. Issued 2,400 shares of the common stock at $19 per share and 1,100 shares of the preferred stock at $15. d. Net income for the first year was $42,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. NORTH WIND AVIATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital Total Contributed Capital 0 Total Stockholders' Equity 0 IMG 0578.jpg ? IMG-0574.jpg ?MG-0573.jpg IMG_0575.jpg

Explanation / Answer

Stockholder's equity :

Contributed capital Common Stock 36400 Additional paid in capital-Common Stock 485200 Preferred Stock 121000 Additional paid in capital-Preferred Stock 60500 Total contributed capital 703100 Retained earnings 42000 Total Stockholder's equity 745100

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.