Question
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:
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. The following transactions occurred during the first year of operations in the order given: a. Issued a total of 33,000 shares of the common stock for $13 per share. b. Issued 12,000 shares of the preferred stock at $14 per share. c. Issued 2,300 shares of the common stock at $18 per share and 1,200 shares of the preferred stock at $14. d. Net income for the first year was $41,000, but no dividends were declared. Required: Prepare the stockholders' equity section of the balance sheet at December 31. NORTH WIND AVIATION Balance Sheet (Partial) R Contributed Capital: Preferred Stock Common Stock At December 31 Stockholders' Equity Additional Paid-In Capital, Preferred Stock Additional Paid-In Capital, Common Stock $ 132,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started