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Equity Section of the Balance Sheet [LO2, LO4]

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E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet [LO2, LO4];North Wind Aviation received its charter during January 2007. The charter authorized the following capital stock;Preferred stock: 8 percent, par $10, authorized 20,000 shares.;Common stock: par $7, authorized 50,000 shares.;During 2007, the following transactions occurred in the order given;a.;Issued a total of 40,000 shares of the common stock to the company's founders for $11 per share.;b.;Sold 5,000 shares of the preferred stock at $18 per share.;c.;Sold 3,000 shares of the common stock at $14 per share and 1,000 shares of the preferred stock at $28.;d.;Net income for the first year was $48,000.

 

Paper#26686 | Written in 18-Jul-2015

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