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When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000
When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $2 stated value common stock. Half of the preferred stock was issued at a price of $103 per share, and 70,000 shares of the common stock were sold for $13 per share. At the end of the current year, Resisto has retained earnings of $382,000. a)Prepare the stockholders' equity section of the company's balance sheet at the end of the current year. b) Assume Resisto Systems common stock is trading at $24 per share and its prefered 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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