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Prepare a stockholders equity section at December 31, 2020. The stockholders equity accounts of Sheffield Corporation on January 1, 2020, were as follows. Preferred Stock
Prepare a stockholders equity section at December 31, 2020.
The stockholders equity accounts of Sheffield Corporation on January 1, 2020, were as follows.
Preferred Stock (8%, $48 par, 10,000 shares authorized) | $ 384,000 | |
Common Stock ($1 stated value, 2,100,000 shares authorized) | 1,250,000 | |
Paid-in Capital in Excess of ParPreferred Stock | 150,000 | |
Paid-in Capital in Excess of Stated ValueCommon Stock | 1,400,000 | |
Retained Earnings | 1,750,000 | |
Treasury Stock (11,000 common shares) | 44,000 |
During 2020, the corporation had the following transactions and events pertaining to its stockholders equity.
Feb. | 1 | Issued 24,000 shares of common stock for $117,000. | |
Apr. | 14 | Sold 6,000 shares of treasury stockcommon for $33,700. | |
Sept. | 3 | Issued 5,100 shares of common stock for a patent valued at $35,000. | |
Nov. | 10 | Purchased 1,100 shares of common stock for the treasury at a cost of $5,700. | |
Dec. | 31 | Determined that net income for the year was $420,000. |
No dividends were declared during the year.
SHEFFIELD CORPORATION Balance Sheet (Partial) December 31, 2020 Stockholders' Equity Paid-in Capital Capital Stock Preferred Stock Common Stock Total Capital Stock Paid-in Capital Paid-in Capital in Excess of Par-Common Stock Paid-in Capital in Excess of Stated Value-Common St Paid-in Capital from Treasury Stock Total Paid-in CapitalStep by Step Solution
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