Tandy, Incorporated, was issued a charter on January 15, 2014, that authorized t

Question

Tandy, Incorporated, was issued a charter on January 15, 2014, that authorized the following capital stock: Common stock, no-par, 122,000 shares Preferred stock, 8 percent, par value $14 per share, 4,400 shares The board of directors established a stated value on the no-par common stock of $16 per share. During 2014, the following selected transactions were completed in the order given: a. Sold and issued 21,100 shares of the no-par common stock at $28 cash per share. b. Sold and issued 1,600 shares of preferred stock at $32 cash per share. c. At the end of 2014, the accounts showed net income of $40,300. Required: 1. Prepare the stockholders’ equity section of the balance sheet at December 31, 2014.

Explanation / Answer

Tandy Balance Sheet (Partial) As on Dec 31, 2014 Stockholders' Equity Section Authorized Common Stock -122000 Shares @ $16     1,952,000 Preferred Stock - 4400 Shares @ $14           61,600 Issued Common Stock -21100 Shares X $16         337,600 Preferred Stock - 1600 Shares X $14           22,400 Paid-in capital excess of par - Common Stock - 21100 Shares X $12         253,200 Paid-in capital excess of par - Preferred Stock - 1600 Shares X $18           28,800 Total paid up Capital         642,000 Retained Earnings Net Income           40,300 Total Stockholders' Equity         682,300

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

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