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Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The...

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Accounting

Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the
state authorized the following capital stock:
Common stock, $1 par value, 200,000 shares.
Preferred stock, $10 par value, 6 percent, 50,000 shares.
During January and February, the following stock transactions were completed:
a. Collected $100,000 cash and issued 10,000 shares of common stock.
b. Issued 10,000 shares of preferred stock at $20 per share; collected in cash.
Net income for the year was $40,000; cash dividends declared and paid at year-end were $12,000.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31.(Helpful tool: Record Journal Entries for each (A-D)
transaction before attempting to complete the balance sheet below)
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