Sarah Co. has the following stockholders' equity for 12/31/2019: 25,000 A 1,400 26,400 Preferred stock,...
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Sarah Co. has the following stockholders' equity for 12/31/2019: 25,000 A 1,400 26,400 Preferred stock, 8%, $50 par, 8,000 shares authorized, 500 shares issued and outstanding Common stock, $.20 par, 10,000 shares authorized, 7,000 shares issued, and 6,700 shares outstanding Total capital stock Additional paid-in capital: Preferred Common Total paid-in capital Retained earnings Treasury Stock (300 shares at $25 cost) Total stockholders' equity 208,600 235,000 280,000 (7,500) 507,500) $ Required: Record the transactions listed and prepare the 2020 stockholders' equity section of the balance sheet. The company reported NI of $90,000 for 2020. (a) Record the transactions listed. (1) Sold 100 shares of its treasury stock at $35 per share. The company uses the cost method
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