Question 3a

Preparing a stockholders' equity section

When Duke Corporation was incorporated in 2003, authorization was obtained to issue 200,000 shares of $5 par value common stock and 6,000 shares of 8% cumulative preferred stock. The preferred stock has a par value of $100. All the preferred stock was issued at $105 per share, and 110,000 shares of the common stock were sold for $8 per share. The operations of the company resulted in a net loss of $18,000 in 2003 and net income of $120,000 in 2004. In 2005, net income was $348,000, and the cash position was sufficient to allow the board of directors to declare a cash dividend of $1 per share to the common shareholders, as well as satisfy all preferred stock dividend requirements.

Complete in good form the stockholders' equity section of Duke Corporation's balance sheet at December 31, 2005. (Hint: First determine the total amount of dividends declared in 2005.)

Stockholders equity:
8% preferred stock, $100 par value, 6,000 shares authorized
and issued.................................................................................	$
Common stock, $5 par value, 200,000 shares authorized, ________shares issued.................................................................................	______
Total paid-in capital.................................................................................	______
Total stockholders equity.................................................................................	$

How many shares of common stock are issued?

What is the amount of dividends issued to preferred stockholders?

What is the total paid in capital?