Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $11 par value, 21,500 shares authorized Common stock: $9 par value, 50,300 shares authorized During the year, the following transactions occurred in the order given: 1. Issued 38,000 shares of the common stock for $13 per share. 2. Sold 6,100 shares of the preferred stock for $17 per share. 3. Sold 3,900 shares of the common stock for $16 per share and 2,900 shares of the preferred stock for $27 per share. 4. Net income for the year was $70,000. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year.

Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $11 par value, 21,500 shares authorized Common stock: $9 par value, 50,300 shares authorized During the year, the following transactions occurred in the order given: 1. Issued 38,000 shares of the common stock for $13 per share. 2. Sold 6,100 shares of the preferred stock for $17 per share. 3. Sold 3,900 shares of the common stock for $16 per share and 2,900 shares of the preferred stock for $27 per share. 4. Net income for the year was $70,000. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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