Witt Corporation received its charter during January of this year. The charter a
ID: 2608086 • Letter: W
Question
Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $11 par value, 22,700 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 39,800 shares of the common stock at $13 cash per share. b. Sold 7,500 shares of the preferred stock at $17 cash per share. c. Sold 3,300 shares of the common stock at $16 cash per share and 1,800 shares of the preferred stock at $27 cash per share. d. Net income for the year was $65,000. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. Use exact numbers please
Explanation / Answer
Stockholder's Equity
Amount
Authorized Capital
Preferred Stock , 10%
$ 249,700
Common Stock
$ 454,500
$ 704,200
Paid - in Capital
Preferred Stock , 10%
(7500 + 1800)
$ 102,300
Common Stock
(39800 + 3300)
$ 387,900
Paid in Capital in excess of par value - Preferred Stock
(6 + 16) * 9300
$ 204,600
Paid in Capital in excess of par value - Common Stock
(4 + 7) * 43100
$ 474,100
Retained Earnings for the year ended
$ 65,000
Total Stockholder's Equity
$ 1,233,900
Stockholder's Equity
Amount
Authorized Capital
Preferred Stock , 10%
$ 249,700
Common Stock
$ 454,500
$ 704,200
Paid - in Capital
Preferred Stock , 10%
(7500 + 1800)
$ 102,300
Common Stock
(39800 + 3300)
$ 387,900
Paid in Capital in excess of par value - Preferred Stock
(6 + 16) * 9300
$ 204,600
Paid in Capital in excess of par value - Common Stock
(4 + 7) * 43100
$ 474,100
Retained Earnings for the year ended
$ 65,000
Total Stockholder's Equity
$ 1,233,900
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