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10 4 points eBook E11-4 (Algo) Reporting the Stockholders' Equity Section of the Balance Sheet [LO 11-2, LO 11-3, LO 11-4] Shelby Corporation was
10 4 points eBook E11-4 (Algo) Reporting the Stockholders' Equity Section of the Balance Sheet [LO 11-2, LO 11-3, LO 11-4] Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $225,000 cash and issued 15,000 shares of common stock. b. Issued 12,500 shares of preferred stock at $25 per share; collected in cash. Print Net income for the year was $45,000; cash dividends declared and paid at year-end were $10,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. Contributed Capital: Total Contributed Capital SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity 0 Total Stockholders' Equity $ 0
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