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