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Please show how to calculate each answer and I'm not certain if my journal entries are correct, thank you! The Clothing Cove has two classes
Please show how to calculate each answer and I'm not certain if my journal entries are correct, thank you!
The Clothing Cove has two classes of stock authorized: 7\%, \$10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024 , its first year of operations: January 2 Issues 100,000 shares of common stock for $24 per share. February 6 Issues 1,900 shares of 7% preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $29 per share. December 15 Resells 6,000 shares of treasury stock at $34 per share. In its first year of operations, The Clothing Cove has net income of $149,000 and pays dividends at the end of the year of $94,000 ( $1 per share) on all common shares outstanding and $1,330 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for The Clothing Cove as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)Step by Step Solution
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