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.
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