Witt Corporation received its charter during January of this year. The charter a

Question

Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $12 par value, 21,600 shares authorized Common stock: $10 par value, 51,600 shares authorized During the year, the following transactions occurred in the order given: a. Issued a total of 38,000 shares of the common stock at $14 cash per share. b. Sold 6,100 shares of the preferred stock at $18 cash per share c. Sold 3,800 shares of the common stock at $17 cash per share and 1,300 shares of the preferred stock at $28 cash per share. d. Net income for the year was $58,000 Required Prepare the stockholders' equity section of the balance sheet at the end of the year WITT CORPORATION Balance Sheet (Partial) At December 31, This year Stockholders' equity: Contributed capital Preferred stock Additional paid-in capital, preferred stock Common stock Additional paid-in capital, common stock $88,800 57,400 418,000 564,200 58,000 Total contributed capital Retained earnings Total stockholders' equity $ 622,200

Explanation / Answer

Stockholder's equity :

Stockholder's equity Contributed capital Preferred Stock 88800 Additional paid in capital, Preferred Stock 57400 Common Stock 418000 Additional paid in capital, Common Stock 178600 Total contributed Capital 742800 Retained earnings 58800 Total Stockholder's equity 801600

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