Question
When Reisto Systems, Inc. was formed, the company was authorized to issue 5000 shares of $100 per value, 8% cumulative preferred stock, and 100000 shares
When Reisto Systems, Inc. was formed, the company was authorized to issue 5000 shares of $100 per value, 8% cumulative preferred stock, and 100000 shares of $2 stated value common stock. Half of the preferred stock was issued at a price of $103 per share. At the end of the current year, Resisto has retained earnings of $475000. A. Prepare the stockholder's equity section of the company's balance sheet at the end of the current year. B. Assume Resisto System's common stock is trading at $24 per share and its preferred stock is trading at $107 per share at the end of the current year. Would the stockholders' equity section prepared in part A be affected by this additional information?
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