In Draco Corporations first year of business, the following transactions affected its equity accounts. Issued...
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Accounting
In Draco Corporations first year of business, the following transactions affected its equity accounts.
Issued 6,000 shares of $2 par value common stock for $38. It authorized 20,000 shares.
Issued 1,500 shares of 12%, $10 par value preferred stock for $43. It authorized 3,000 shares.
Reacquired 300 shares of common stock for $50 each.
Retained earnings is impacted by reported net income of $70,000 and cash dividends of $25,000.
Prepare the stockholders equity section of Dracos balance sheet as of December 31. (Amounts to be deducted should be indicated by a minus sign.)
DRACO CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 s 15,000 Preferred stock-$10 par value Paid-in capital in excess of par value, preferred stock Common stock-$2 par value Paid-in capital in excess of par value, common stock Retained earnings Less: Cost of treasury stock Total stockholders' equity 12,000 45,000 $72,000
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