Tandy Company was issued a charter by the state of Indiama on Jamzary 15 af ths

Question

Tandy Company was issued a charter by the state of Indiama on Jamzary 15 af ths year The charter authonced the tolowmg Common stock, S7 par value, 114,000 shares authorized Preferred stock, 9 percent, par value $6 per share, 4,600 shares authorized During the year, the following transactions took place in the order presented a. Sold and issued 20,600 shares of common stock at $12 cash per share b. Sold and issued 1,800 shares of preferred stock at $16 cash per share. c. At the end of the year, the accounts showed net income of $40,400. No dividends were declared Required 1. Prepare the stockholders' equity section of the balance sheet at the end of the year TANDY, INCORPORATED Balance Sheet (Partial) At December 31, this year Stockholders' equity Contributed capital Accounts payable Additional paid-in capital, common stock Additional paid-in capital, preferred stock Available for sale securities Bonds payable Cash

Explanation / Answer

Stockholder's equity :

Stockholder's equity Contributed capital Common Stock 144200 Preferred Stock 10800 Paid in capital in excess of par value-Common Stock 103000 Paid in capital in excess of par value-Preferred Stock 18000 Total contributed capital 276000 Retained earnings 40400 Total Stockholder's equity 316400

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