P11-2 (Algo) Preparing the Stockholders' Equity Section of the Balance Sheet LO11-1, 11-3, 11-7, 11-8 Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $10 par value, 21,400 shares authorized Common stock: $8 par value, 51,300 shares authorized During the year, the following transactions occurred in the order given: a. Sold 38,200 shares of the common stock for $12 per share. b. Sold 6,900 shares of the preferred stock for $16 per share. c. Sold 3,600 shares of the common stock for $15 per share and 2,500 shares of the preferred stock for $26 per share. d. Net income for the year was $61,000. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. E11-6 (Algo) Finding Amounts Missing from the Stockholders' Equity Section LO11-1, 11-3, 11-7 Assume that the stockholders' equity section on the balance sheet of Mangum's, a popular department store, is shown below. Durin the year, the company reported net income of $241,125,000 and declared and paid dividends of $11,907,000. Required: 1. What is the par value of Magnum's Class A common stock? 2. How many shares of Class A Common Stock were outstanding at the end of last year and the end of the current year? 3. What amount was reported in the Retained Earnings account at the end of last year? 4. How is the dollar amount in the treasury stock account at the end of the current year reflected on the asset side of the balance sheet? 5. During the current year, by what amount did treasury stock transactions increase or decrease stockholders' equity? 6. At the end of the current year, what was the average price paid per share for shares held in treasury stock