90.2K

Verified Solution

Link Copied!

Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock, $19 par value, 99,100 shares authorized Preferred stock, \$41 par value, 8 percent, 60,900 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 79,700 shares of common stock at $38 cash per share. b. Sold 20,000 shares of preferred stock at $79 cash per share. c. Bought 4,600 shares of common stock from a current stockholder for $24 cash per share. Required: Net income for the year was $91,800; cash dividends declared and paid at year-end were $30,900. Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.) \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ QUICK FIX-IT CORPORATION } \\ \multicolumn{2}{|c|}{ Balance Sheet (Partial) } & \\ \hline \multicolumn{1}{|c|}{ At December 31, This year } & \\ \hline Stockholders' equity: & & \\ \hline Contributed capital: & & \\ \hline Common stock & & \\ \hline Preferred stock & & \\ \hline Additional paid-in capital, preferred stock & & \\ \hline \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer