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Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:

Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:

 

     Common stock, $8 par value, 106,000 shares authorized

     Preferred stock, 7 percent, par value $8 per share, 5,700 shares authorized

 

During the year, the following transactions took place in the order presented:



a. Sold and issued 20,400 shares of common stock at $16 cash per share.

b. Sold and issued 1,600 shares of preferred stock at $20 cash per share.

c. At the end of the year, the accounts showed net income of $42,000. No dividends were declared.

 

I need help preparing the stockholders' equity section of the balance sheet at the end of the year.

 

Top Answer

a. Sold and issued 20,400 shares of common stock at $16 cash per share. Cash (20400*$16) Dr $326,400 Common Stock (20400*$8)... View the full answer

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Stockholder' Equity :
:Ce-mme-n stock, 58 par 1lI'alue, 195,000 shares authorized, 2040:: Issued and Paid up $153,299 Paid in Capital in Excess Preferred stock, 7" percent, par 1uralue 58 per...

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Other Answers

Shareholder's Equity: Shareholder's Equity is also termed as owner's... View the full answer

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