---**In Draco Corporation's first year of business, the following transactions affected its equity accounts:**- Issued 4,800 shares of $2 par value common stock for $26. It authorized 20,000 shares.- Issued 1,200 shares of 12%, $10 par value preferred stock for $31. It authorized 3,000 shares.- Reacquired 240 shares of common stock for $38 each.- Retained earnings is impacted by reported net income of $58,000 and cash dividends of $19,000.**Prepare the stockholders' equity section of Draco’s balance sheet as of December 31. (Amounts to be deducted should be indicated by a minus sign.)**---**DRACO CORPORATION****Stockholders' Equity Section of the Balance Sheet***December 31*| **Stockholders' Equity Section** | **Amount** ||-------------------------------------|-------------|| | || | || | || | || | || | || | || Total stockholders’ equity | |---In this exercise, you are tasked with preparing the stockholders' equity section of Draco Corporation’s balance sheet as of December 31. The section above reviews the necessary transactions that need to be accounted for, including the issuance and reacquisition of stock, reported net income, and dividends paid. For a complete statement, detailed calculations based on the given data must be inserted into the table.

The stockholders' equity section of the balance sheet represents the amount that a company has to…

▪ Issued 4,800 shares of $2 par value common stock for $26. It authorized 20,000 shares. • Issued 1,200 shares of 12%, $10 par value preferred stock for $31. It authorized 3,000 shares. Reacquired 240 shares of common stock for $38 each. . • Retained earnings is impacted by reported net income of $58,000 and cash dividends of $19,000.

▪ Issued 4,800 shares of $2 par value common stock for $26. It authorized 20,000 shares. • Issued 1,200 shares of 12%, $10 par value preferred stock for $31. It authorized 3,000 shares. Reacquired 240 shares of common stock for $38 each. . • Retained earnings is impacted by reported net income of $58,000 and cash dividends of $19,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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