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Dalmation Corporation was issued a charter on January 15 authorizing the following capital stock: ...

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Accounting

Dalmation Corporation was issued a charter on January 15 authorizing the following capital stock:
Common stock, $6 par, 100,000 shares, one vote per share.
Preferred stock, 7 percent, par value $10 per share, 5,000 shares, nonvoting.
The following selected transactions were completed during the first year of operations in the order given:
a. Issued 16,000 shares of the $6 par common stock at $22 cash per share.
b. Issued 2,600 shares of preferred stock at $26 cash per share.
c. At the end of the year, the accounts showed net income of $34,000. No dividends were declared.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31.
Assume that you are a common stockholder of Dalmation Corporation. If the company needed additional capital, would you prefer to have it issue additional common stock or additional preferred stock?
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