Quick Fix-it Corporation was organized in January 2014 to operate several car repair businesses in a large

Question:

Quick Fix-it was organized in January 2014 to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following capital stock:
, $10 par value, 98,000 shares
Preferred stock, $50 par value, 8 percent, 59,000 shares
During January and February 2014, 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 2014 was $210,000; cash dividends declared and paid at year-end were $50,000. Prepare the stockholders’ equity section of the at December 31, 2014.

Common Stock
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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
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