Entries:

Contributed Capital

Common Stock

Additional Paid-in Capital, Common Stock

Additional Paid-in Capital, Preferred Stock

Total Contributed Capital

Preferred Stock

Retained Earnings

Total Stockholders' Equity

16 Value: 0.37 points E11-4 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 $900,000 cash and issued 30,000 shares of common stock. b. Issued 20,000 shares of preferred stock at $40 per share, collected in cash. Net income for the year was $60,000, cash dividends declared and paid at year-end were $11,000 Required: Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial At December 31 Stockholders' Equity Contributed Capital Total Contributed Capital Total Stockholders' Equity