Question
Shown below is the stockholders equity section of Powells balance sheet at December 31, 2009 : Stockholders equity: Common stock, $2 par value, 500,000 shares
Shown below is the stockholders equity section of Powells balance sheet at December 31, 2009:
Stockholders equity:
Common stock, $2 par value, 500,000 shares authorized,
?? shares issued$500,000
Additional paid-in capital common stock$1,750,000
Total paid in capital$2,250,000
Retained earnings.2,400,000
Total stockholders equity.$4650,000
In 2010, the following events occurred:
Powell issued 2,500 shares of $2 par common stock as payment for legal services. Although Powells stock is not traded on any exchange, the agreed-upon value of the legal services is $80,000.
Powell issued 4,500 shares of 6% cumulative preferred stock, $100 par value, for $106 per share.
The board of directors declared a dividend of $1.25 per share on the common stock. Powells net income for 2007 was $675,000.
Instructions
Complete in good form the stockholders equity section of a balance sheet prepared for Powell at December 31, 2010
- Stockholders equity: 6% cumulative preferred stock, $100 par value, 10,000 shares authorized, 4,500 shares issued
- Total paidin capital
- Total stockholders equity
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