Exercise Algo Prepare the stockholders' equity section L
For Feet's Sake has two classes of stock authorized: $ par preferred, and $ par value common. The following transactions affect
stockholders' equity during its first year of operations:
January Issues shares of common stock for $ per share.
February Issues shares of preferred stock for $ per share.
September Purchases shares of its own common stock for $ per share.
December Resells shares of treasury stock at $ per share.
In its first year of operations, For Feet's Sake has net income of $ and pays dividends at the end of the year of $ $ per
share on all common shares outstanding and $ on all preferred shares outstanding.
Required:
Prepare the stockholders' equity section of the balance sheet for For Feet's Sake as of December Amounts to be deducted
should be indicated by a minus sign.
