When Dido, Inc. was incorporated in 2019, authorization was obtained to issue 200,000 shares of...
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When Dido, Inc. was incorporated in 2019, authorization was obtained to issue 200,000 shares of $5 par value common stock and 6,000 shares of 8% cumulative preferred stock. The preferred stock has a par value of $100. All the preferred stock was issued at $107 per share, and 110,000 shares of the common stock were sold for $9 per share. The operations of the company resulted in a net loss of $19,000 in 2019 and net income of $125,000 in 2020. In 2021, net income was $352,000, and the cash position was suffi- cient to allow the board of directors to declare a cash dividend of $1 per share to the common shareholders, as well as satisfy all preferred stock dividend requirements. Required: Complete in good form the stockholders' equity section of Dido, Inc.'s balance sheet at December 31, 2021. (Hint: First determine the total amount of dividends declared in 2021.) Stockholders' Equity: 8% preferred stock, $100 par, 6,000 shares authorized and issued $ Common stock, $5 par. 200,000 shares authorized, 110,000 shares issued Total paid-in capital 1,632,000 Total stockholders' equity
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