Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
cant figure out what i am doing wrong!! In its first year of operations, Finishing Touches has net income of $147,000 and pays dividends at
cant figure out what i am doing wrong!!
In its first year of operations, Finishing Touches has net income of $147,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $1,530 on all preferred shares outstanding Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity Common stock 100,000 Preferred stock 17,000 Additional paid-in capital 212,900 Treasury stock 27,500 Total paid-in capital 357,400 Retained earnings 50,970 Additional paid-in capital X 2,297,170 % Treasury stock (148,500) Total stockholders' equity $ 2,557,040 Finishing Touches has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issues 100,000 shares of common stock for $22 per share. February 6 Issues 1,700 shares of 94 preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $27 per share. December 15 Resells 5,500 shares of treasury stock at $32 per share. In its first year of operations, Finishing Touches has net income of $147,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $1,530 on all preferred shares outstanding
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bd3a05fd68_287669bd39fef801.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bd3a1107b0_288669bd3a097299.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started