Bookmarks ESC111 1 Quiz 10F North Wind Aviation received its charter during Janu

Question

Bookmarks ESC111 1 Quiz 10F North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: a. Issued a total of 34,000 shares of the common stock for $14 per share. b. Issued 11,000 shares of the preferred stock at $15 per share. c. Issued 2,400 shares of the common stock at $19 per share and 1,100 shares of the preferred stock at $15 d. Net income for the first year was $42.000. Required: Prepare the stockholders' equity section of the balance sheet at December 31 NORTH WIND AVIATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: Total Contributed Capital Total Stockholders' Equity FI F2 F3 F4

Explanation / Answer

1) Prepare shareholder's equity section :

2) Prepare shareholder's equity section :

Contributed Capital Common stock 36400 Additional paid in capital - common stock 485200 Preferred stock 121000 Additional paid in capital-Preferred stock 60500 Total contributed capital 703100 Retained earnings 42000 Total shareholder's equity 745100

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