Question
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $6
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $6 par value, 118,000 shares authorized Preferred stock, 14 percent, par value $11 per share, 5,600 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 20,800 shares of common stock at $22 cash per share. b. Sold and issued 1,100 shares of preferred stock at $26 cash per share. c. At the end of the year, the accounts showed net income of $41,500. No dividends were declared. Required: 1. Prepare the stockholders equity section of the balance sheet at the end of the year.
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