Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As...

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Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 150 shares of preferred stock and 2,800 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 2,800 additional shares of common stock for $12 per share. Issue 150 additional shares of preferred stock for $38 per share. April 1 June 1 June 30 Declare a cash dividend on both common and preferred stock of $0.35 per share to all stockholders of record on June 15. Pay the cash dividends declared on June 1. August 1 Purchase 250 shares of common treasury stock for $9 per share. October 1 Resell 150 shares of treasury stock purchased on August 1 for $11 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,500; Common Stock, $2,800; Additional Paid-in Capital, $19,300; and Retained Earnings, $11,300. Net income for the year ended December 31, 2024, is $7,550. Taking into consideration the beginning balances on January 1, 2024 and all the transactions during 2024, respond to the following for Nautical: Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. (Amounts to be deducted sh indicated by a minus sign.) NAUTICAL Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' equity: Total paid-in capital Total stockholders' equity Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 150 shares of preferred stock and 2,800 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 2,800 additional shares of common stock for $12 per share. Issue 150 additional shares of preferred stock for $38 per share. April 1 June 1 June 30 Declare a cash dividend on both common and preferred stock of $0.35 per share to all stockholders of record on June 15. Pay the cash dividends declared on June 1. August 1 Purchase 250 shares of common treasury stock for $9 per share. October 1 Resell 150 shares of treasury stock purchased on August 1 for $11 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,500; Common Stock, $2,800; Additional Paid-in Capital, $19,300; and Retained Earnings, $11,300. Net income for the year ended December 31, 2024, is $7,550. Taking into consideration the beginning balances on January 1, 2024 and all the transactions during 2024, respond to the following for Nautical: Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. (Amounts to be deducted sh indicated by a minus sign.) NAUTICAL Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' equity: Total paid-in capital Total stockholders' equity

Answer rating: 100% (QA)

To analyze the transactions affecting stockholders equity for Nautical during 2024 well go through each transaction stepbystep assuming the given tran... View the full answer