Question
DEF Company incorporated on January 1, 2018 after receiving authorization to issue 5,000 shares of $100 par value preferred stock and 500,000 shares of $10
DEF Company incorporated on January 1, 2018 after receiving authorization to issue 5,000 shares of $100 par value preferred stock and 500,000 shares of $10 par value common, with the former having a 10% cumulative dividend feature. During fiscal 2018, the company engaged in the following equity transactions:
January 1 Issued 500 shares of preferred stock for $120 each.
January 1 Issued 10,000 shares of common stock for $25 each. June 30 Bought 1,000 shares of common stock for the treasury at $30 each.
December 31 Declared the preferred stock dividend and a $1.00 per-share dividend on the common.
DEFs fiscal 2018 comprehensive income consisted of the following: sales revenue of $2,500,000, cost of goods sold of $1,600,000, operating expenses of $300,000, income taxes of $215,000, and $40,000 of other comprehensive income from a transaction not subject to income tax. RequiredPrepare in good form each of the following:
1. DEFs fiscal 2018 comprehensive income statement.
\2. DEFs fiscal 2018 statement of stockholders equity.
3. The stockholders equity section as DEF should present in its fiscal 2018 balance sheet.
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