FILL IT OUT THIS TO ANSWER:

LO E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet 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. a. The following transactions occurred during the first year of operations in the order given: Issued a total of 40,000 shares of the common stock for $15 per share. b. Issued 10,000 shares of the preferred stock at $16 per share. Issued 3,000 shares of the common stock at $20 per share and 1,000 shares of the preferred stock at $16. d. Net income for the first year was $48,000, but no dividends were declared. C. Required: Prepare the stockholders' equity section of the balance sheet at December 31. E11-3 Stockholders' Equity-December 31 Contributed Capital: Preferred Stock, 8%, par $10, authorized 20,000; issued & outstanding 11,000 shares $110,000 Total Contributed Capital Retained Earnings Total Stockholders' Equity $884,000 Make Note: Before you prepare the Stockholders' Equity section, you need to go through a, b, c and d and determine how each item will impact equity. Then add any changes to the current balances. a. Issued a total of 40,000 shares of common stock; $15/share; Par $1/share Cash (40,000 X $15) $600,000 Common Stock (40,000 X $1) $40,000 PIC - Common Stock (40,000 X $14) $560,000 b. Issued 10,000 shares of preferred stock; $16/share; Par $10/share c. Issued 3,000 shares common stock $20/share and 1,000 shares of preferred stock $16/share $16,000 Cash (1,000 X $16) Preferred Stock (1,000 X $10) PIC - Preferred Stock (1,000 X $6) $10,000 $6,000