Need in less than 2 hours please! Also posting another. Witt Corporation receive

ID: 2589110 • Letter: N

Question

Need in less than 2 hours please! Also posting another.

Witt Corporation received its charter during January of this year. The charter authorized the following stock Preferred stock: 10 percent, $11 par value, 22,600 shares authorized Common stock: $9 par value, 50,500 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 $13 cash per share. b. Sold 6,800 shares of the preferred stock at $17 cash per share c. Sold 3,600 shares of the common stock at $16 cash per share and 1,900 shares of the preferred stock at $27 cash per share. d. Net income for the year was $52,000. 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 $ 95,700 Preferred stock Additional paid-in capital, preferred stock Common stock Additional paid-in capital, common stock Total contributed capital 95,700 Total stockholders' equity $ 95,700

Explanation / Answer

Solution

Witt Corporation

Balance Sheet (Partial)

at December 31, 2017

Stockholders' Equity:

Contributed Capital

Preferred Stock - $11 per share, 10%, 22,600 shares authorized,

8,700 shares issued and outstanding

$95,700

Common Stock

50,500 shares authorized,

41,600 shares issued and outstanding

$374,400

Total Capital Stock

$470,100

Additional Paid-in Capital

Paid-in Capital in Excess of Par - Preferred

$71,200

Paid-in Capital in Excess of Par - Common Stock

$177,200

Total Paid-in Capital

$248,400

Retained Earnings

$52,000

Total Stockholders' Equity

$770,500

Notes:

Number of shares issued and outstanding = 6,800 + 1,900 = 8,700

Par value per share = $11

6,800 x ($17 - $11) + 1,900 x ($27 -$11) = 6,800 x $6 + 1,900 x $16 = $40,800 + $30,400

Paid-in capital Preferred shares = $71,200

Shares issued and outstanding = 38,000 + 3,600 = 41,600 shares

Par value = $9

Common stock par value = $374,400

Common stock paid-in capital in excess of par value:

= 38,000 x ($13 - $9) + 3,600 x ($16 - $9) = $177,200