Quick Fix-it Corporation was organized in January 2011 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 2011, 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 2011 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, 2011.