12) Worldwide Company obtained a charter from the state in January that authorized 200,000 shares...
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12) Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $37,700 and declared no dividends; the following selected transactions occurred in the order given:
Issued 55,000 shares of the common stock at $12 cash per share.
Repurchased 1,500 shares at $15 cash per share from stockholders; the shares are now held in treasury.
Reissued 750 of the shares in transaction (b) two months later at $18 cash per share.
Prepare the stockholders equity section of the balance sheet at December 31. TIP: Because this is the first year of operations, Retained Earnings has a zero balance at the beginning of the year. (Amounts to be deducted should be indicated by a minus sign.)
WORLDWIDE COMPANY Balance Sheet (Partial) At December 31 Stockholders' Equity \begin{tabular}{|c|c|} \hline Contributed Capital: & \\ \hline Total Contributed Capital & \\ \hline \hline Total & 0 \\ \hline \hline Total Stockholders' Equity & $ \\ \hline \end{tabular}
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