Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair busi

Question:

Quick Fix-It was organized at the beginning of this year to operate several car repair busi nesses in a large metropolitan area. The charter issued by the state authorized the following stock:
Common stock, $10 par value, 98,000 shares authorized
Preferred stock, $50 par value, 8 percent, 59,000 shares authorized
During January and February of this year, the following stock transactions were completed:
a. Sold 78,000 shares of at $20 cash per share.
b. Sold 20,000 shares of preferred stock at $80 cash per share.
c. Bought 4,000 shares of from a current stockholder for $20 cash per share.
Required:
Net income for the year was $210,000; cash dividends declared and paid at year-end were $50,000. Prepare the stockholders' equity section of the at the end of the year.
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... 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...