Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 125 shares of preferred stock and 1,700 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2024: March 1 Issue 1,700 additional shares of common stock for $18 per share. April 1 Issue 175 additional shares of preferred stock for $27 per share. June 1 Declare a cash dividend on both common and preferred stock of $0.65 per share to all stockholders of record on June 15. June 30 Pay the cash dividends declared on June 1. August 1 Purchase 175 shares of common treasury stock for $15 per share. October 1 Resell 125 shares of treasury stock purchased on August 1 for $17 per share. Nautical has the following beginning balances in its stockholders’ equity accounts on January 1, 2024: Preferred Stock, $1,250; Common Stock, $1,700; Additional Paid-in Capital, $18,200; and Retained Earnings, $10,200. Net income for the year ended December 31, 2024, is $7,000. Taking into consideration the beginning balances on January 1, 2024 and all the transactions during 2024, respond to the following for Nautical: Required: 1. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)

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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Question

Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 125 shares of preferred stock and 1,700 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2024:

March 1	Issue 1,700 additional shares of common stock for $18 per share.
April 1	Issue 175 additional shares of preferred stock for $27 per share.
June 1	Declare a cash dividend on both common and preferred stock of $0.65 per share to all stockholders of record on June 15.
June 30	Pay the cash dividends declared on June 1.
August 1	Purchase 175 shares of common treasury stock for $15 per share.
October 1	Resell 125 shares of treasury stock purchased on August 1 for $17 per share.

Nautical has the following beginning balances in its stockholders’ equity accounts on January 1, 2024: Preferred Stock, $1,250; Common Stock, $1,700; Additional Paid-in Capital, $18,200; and Retained Earnings, $10,200. Net income for the year ended December 31, 2024, is $7,000.

Taking into consideration the beginning balances on January 1, 2024 and all the transactions during 2024, respond to the following for Nautical:

Required:

1. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)

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