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    Preparing the Stockholder's Equity Section in a Balance Sheet

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    Witt Corporation received its charter during January 2014. The charter authorized the following capital stock:

    Preferred stock: 10 percent, par $10, authorized 21,000 shares
    Common stock: par $8, authorized 50,000 shares.

    During 2014, the following transactions occurred in the order given:

    a. Issued a total of 40,000 shares of the common stock to the four organizers at $12 per share.
    b. Sold 5,500 shares of the preferred stock at $16 per share.
    c. Sold 3,000 shares of the common stock at $15 per share and 1,000 shares of the preferred stock at $26.
    d. Net income for the year was $96,000.

    Required:

    Prepare the Stockholders' Equity section of the balance sheet at December 31, 2014.
    See attached file for additional information.

    © BrainMass Inc. brainmass.com October 10, 2019, 7:41 am ad1c9bdddf
    https://brainmass.com/business/accounting/591152

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    This solution involves preparing the Stockholders' Equity section of the balance sheet.

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