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Can someone please help explain how to solve this problem and find the numbers. Thank you. E11-3 Preparing the Stockholders' Equity Section of the Balance
Can someone please help explain how to solve this problem and find the numbers. Thank you.
E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet [LO 11-2, LO 11-4] 25 pints North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: a. Issued a total of 33,000 shares of the common stock for $13 per share. b. Issued 12,000 shares of the preferred stock at $14 per share. c. Issued 2,300 shares of the common stock at $18 per share and 1,200 shares of the preferred stock at $14. d. Net income for the first year was $41,000, but no dividends were declared. Required: Prepare the stockholders' equity section of the balance sheet at December 31. NORTH WIND AVIATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: Preferred Stock Additional Paid-In Capital, Preferred Stock Common Stock Additional Paid-In Capital, Common Stock I Total Contributed Capital Total Stockholders' EquityStep by Step Solution
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