Finishing Touches has two classes of stock authorized: 9%, $10 par preferred, and $1 par...
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Accounting
Finishing Touches has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations:
January 2 Issues 100,000 shares of common stock for $19 per share.
February 6 Issues 1,400 shares of 9% preferred stock for $11 per share.
September 10 Repurchases 11,000 shares of its own common stock for $24 per share.
December 15 Reissues 5,500 shares of treasury stock at $29 per share.
In its first year of operations, Finishing Touches has net income of $144,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $1,260 on all preferred shares outstanding.
Required:
Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
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