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Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:
Common stock, $8 par value, 115,000 shares authorized
Preferred stock, 15 percent, par value $6 per share, 5,200 shares authorized
During the year, the following transactions took place in the order presented:
a. Sold and issued 21,400 shares of common stock at $12 cash per share.
b. Sold and issued 2,000 shares of preferred stock at $16 cash per share.
c. At the end of the year, the accounts showed net income of $41,000. No dividends were declared.
Required:
1. Prepare the stockholders equity section of the balance sheet at the end of the year.
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| | | TANDY, INCORPORATED | | Balance Sheet (Partial) | | At December 31, this year | | Stockholders equity: | | | | Contributed capital: | | | | Common stock | ? | | | Preferred stock | ? | | | Additional paid-in capital, common stock | ? | | | Additional paid-in capital, preferred stock | ? | | | | | | | Total contributed capital | | | | Retained earnings | ? | | | | | | | Total stockholders equity | | | |
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