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Need help fixing In Draco Corporation's first year of business, the following transactions affected its equity accounts. Issued 4,000 shares of $2 par value common
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In Draco Corporation's first year of business, the following transactions affected its equity accounts. Issued 4,000 shares of $2 par value common stock for $18. It authorized 20,000 shares. Issued 1,000 shares of 12%, $10 par value preferred stock for $23. It authorized 3,000 shares. Reacquired 200 shares of common stock for $30 each. Retained earnings is impacted by reported net income of $50,000 and cash dividends of $15,000. Prepare the stockholders' equity section of Draco's balance sheet as of December 31. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. DRACO CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 S 10,000 13,000 X 8,000 X Preferred stock-$10 par value Paid-in capital in excess of par value, common stock Paid-in capital in excess of par value, preferred stock Common stock-$2 par value Retained earnings Less: Cost of treasury stock Total stockholders' equity 64,000 35,000 (6,000) 124,000 $
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