Question
When 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
When 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. The preferred stock callable at $104 Half of the preferred stock was issued at a price of $106 per share, and 91,000 shares of the common stock were sold for $24 per share. At the end of the current year, system has retained earnings of $382,000
Required
a. prepare Stock holder equity section of company's balance sheet at the end of current year
b. Assume compnay common stock is trading at 24$ per share and its preffered stock is trading at $108 per share at the end of year . would stock holder equity section prepared in part a will be affected by this additional information ? how ?
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