Presentation of Stockholders\' Equity: Yeager Corporation was organized in Janua

Question

Presentation of Stockholders' Equity: Yeager Corporation was organized in January 2013. During 2013, Yeager engaged in the following stockholders' equity activities:

A.) Secured approval for a corporate charter that authorizes Yeager to sell 500,000, $10 par common shares and 40,000, $100 par preferred shares.

B.)Sold 60,000 of the common shares for $16 per share.

C.)Sold 2,000 of the preferred shares for $102 per share.

D.)Repurchased 550 of the common shares for the treasury at a cost of $27 each.

E.)Earned net income of $31,300.

F.)Paid dividends of $6,000.

Required: Prepare the stockholders' equity portion of Yeager's balance sheet as of December 31, 2013

Explanation / Answer

Stock holder equity portion

Common shares(60,000 @ 16 each)=$960,000

Prefered shares(2000 @ 102 each)=$204,000

Repurchase shares (550 @ 27 each) =$-14,850

Net Income=$31,300

Dividends paid=-$6000

Net=$1,174,450

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