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A company has two ciasses of stock authorized: 9%,$10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1,
A company has two ciasses of stock authorized: 9%,$10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1, its first year of operations: January 2 Issues 100,000 shares of conmon stock for $32 per share. February 6 Issues 2,760 shares of 94 preferred 5 tock for $11 per share. Septeaber 10 Purchases 11 , ead shares of its own common stock for $37 per share. Decenber 15 Resells 5,500 shares of treasury stock at 542 per share. In its first year of operations, the company has net income of $157,000 and pays dividends at the end of the year of $94,500 ( $1 per share) on all common shares outstanding and $2,430 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1 . (Amounts to be deducted should be indicated by a minus sign.)
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