Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $1o par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $576,000 cash and issued 24,000 shares of common stock. b. Issued 17,000 shares of preferred stock at $34 per share; collected in cash. Net income for the year was $54,000; cash dividends declared and paid at year-end were $11,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by
the state authorized the following capital stock:
Common stock, $1 par value, 200o,000 shares.
Preferred stock, $10 par value, 6 percent, 50,000 shares.
During January and February, the following stock transactions were completed:
led
a. Collected $576,000 cash and issued 24,000 shares of common stock.
b. Issued 17,000 shares of preferred stock at $34 per share; collected in cash.
Net income for the year was $54,000; cash dividends declared and paid at year-end were $11,000.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31.
SHELBY CORPORATION
Balance Sheet (Partial)
At December 31
Stockholders' Equity
Contributed Capital:
24
195,000 O
Common Stock
29,000
Preferred Stock
Additional Paid-In Capital, Common Stock
812,000
Additional Paid-In Capital, Preferred Stock
565,500
Total Contributed Capital
1,601,500
Retained Earnings
49,000
$ 1,650,500
Total Stockholders' Equity
Red test indicates ne respons was espected in a cell or a formula-based calculation s incorrect, no ponts deducted
Transcribed Image Text:Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200o,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: led a. Collected $576,000 cash and issued 24,000 shares of common stock. b. Issued 17,000 shares of preferred stock at $34 per share; collected in cash. Net income for the year was $54,000; cash dividends declared and paid at year-end were $11,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: 24 195,000 O Common Stock 29,000 Preferred Stock Additional Paid-In Capital, Common Stock 812,000 Additional Paid-In Capital, Preferred Stock 565,500 Total Contributed Capital 1,601,500 Retained Earnings 49,000 $ 1,650,500 Total Stockholders' Equity Red test indicates ne respons was espected in a cell or a formula-based calculation s incorrect, no ponts deducted
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