North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent,

Question:

North Wind Aviation received its charter during January authorizing the following capital stock:
Preferred stock: 8 percent, par $ 10, authorized 20,000 shares.
Common stock: par $ 1, authorized 50,000 shares.
The following transactions occurred during the first year of operations in the order given:
a. Issued a total of 40,000 shares of the for $ 15 per share.
b. Issued 10,000 shares of the preferred stock at $ 16 per share.
c. Issued 3,000 shares of the at $ 20 per share and 1,000 shares of the preferred stock at $ 16.
d. Net income for the first year was $ 48,000.
Required
Prepare the stockholders’ equity section of the at December 31.
Common Stock
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...