Carter Corporation was organized in January 2009 to operate several car repair businesses in a large metropolitan
Question:
Carter Corporation was organized in January 2009 to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following capital stock:
Common stock, $10 par value, 98,000 shares.
Preferred stock, $50 par value, 8 percent, 59,000 shares.
During January and February 2009, the following stock transactions were completed:
a. Sold 78,000 shares of common stock at $20 per share and collected cash.
b. Sold 20,000 shares of preferred stock at $80 per share; collected the cash and immediately issued the stock.
c. Bought 4,000 shares of common stock from a current stockholder for $20 per share.
Required:
Net income for 2009 was $90,000; cash dividends declared and paid at year end were $30,000. Prepare the stockholders’ equity section of the balance sheet at December 31, 2009.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Contributed capital Preferred stock 8 par 50 authorized 59000 shares issued and out...View the full answer
