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

Question

Quick Fix-lt 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, 99,500 shares authorized Preferred stock, $48 par value, 8 percent, 59,900 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 78,600 shares of common stock at $28 cash per share. b. Sold 20,700 shares of preferred stock at $67 cash per share. c. Bought 4,400 shares of common stock from a current stockholder for $21 cash per share. Required: Net income for the year was $90,800; cash dividends declared and paid at year-end were $31,000. 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.)

Explanation / Answer

Balance Sheet :-

Stockholder's Equity :- Amount($) Amount($) Contribution Capital :- Common Stock (78600*$14) 1100400 Preferred Stock (20700*$48) 993600 Additional Paid in Capital - Common Stock (78600*$14) 1100400 Additional Paid in Capital - Preferred Stock (20700*$19) 393300 Total Contributed Capital 3587700 3587700 Retained Earnings ($90800-$31000) 59800 Total Contribution Capital and Retained Earnings 3647500 Treasury Stock (4400*$21) (92400) Total Stockholder's Equity 3555100

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