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P11-2 Preparing the Stockholders Equity Section of the Balance Sheet LO11-3, 11-7 Witt Corporation received its charter during January 2014. The charter authorized the following
P11-2 Preparing the Stockholders Equity Section of the Balance Sheet LO11-3, 11-7 | |||
Witt Corporation received its charter during January 2014. The charter authorized the following capital stock: | |||
Preferred stock: 10 percent, par $10, authorized 21,000 shares | |||
Common stock: par $8, authorized 50,000 shares. | |||
During 2014, the following transactions occurred in the order given: | |||
a. | Issued a total of 40,000 shares of the common stock to the four organizers at $12 per share. | ||
b. | Sold 5,500 shares of the preferred stock at $16 per share. | ||
c. | Sold 3,000 shares of the common stock at $15 per share and 1,000 shares of the preferred stock at $26. | ||
d. | Net income for the year was $96,000. | ||
Required: | |||
Prepare the Stockholders Equity section of the balance sheet at December 31, 2014. | |||
Possible input areas are shaded. | |||
WITT CORPORATION | |||
Balance Sheet (Partial) | |||
At December 31, 2014 | |||
Stockholders equity: | |||
Contributed capital: | |||
Total contributed capital | - | ||
Total stockholders equity | $ - |
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