Inside Incorporated was issued a charter on January 15 authorizing the following
ID: 2526839 • Letter: I
Question
Inside Incorporated was issued a charter on January 15 authorizing the following capital stock Common stock, $6 par, 100,000 shares, one vote per share Preferred stock, 7 percent, par value S10 per share, 5,000 shares, nonvoting. The following selected transactions were completed during the first year of operations in the order given: a. Issued 18,000 shares of the $6 par common stock at $20 cash per share. b. Issued 2,800 shares of preferred stock at $24 cash per share c. At the end of the year, the accounts showed net income of $36,000 Required 1. Prepare the stockholders' equity section of the balance sheet at December 31 INSIDE INCORPORATED Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital Total Contributed Capital Total Stockholders' EquityExplanation / Answer
INSIDE INCORPORATED Balance Sheet (Partial) At December 31 Stockholders Equity Contributed Capital Paid in Capital Common Stock, $6 par 1,08,000 Paid in Capital Preferred Stock, $10 par 28,000 Paid in Capital in excess of par value -Common Stock 2,52,000 Paid in Capital in excess of par value -Preferred Stock 39,200 Total Contributed Capital 4,27,200 Retained Earnings 36,000 Total Stockholders Equity 4,63,200