Answer:
Witt Corporation
Stockholders' Equity Section of the Balance Sheet at the end of the year:
Authorized share capital:
10% Preferred stock, $10 par, 21,600 shares
Common stock, $8 par, 50,900 shares
Issued and outstanding:
10% Preferred stock, $10 par, 9,500 shares $95,000
Additional Paid-in Capital- Preferred 83,000
Common stock, $8 par, 43,600 shares 348,800
Additional Paid-in Capital- Common stock 189,400
Retained earnings 55,000
Total equity $771,200
Step-by-step explanation:
a) Data and Analysis:
Authorized share capital:
10% Preferred stock, $10 par, 21,600 shares
Common stock, $8 par, 50,900 shares
Transactions:
a. Cash $463,200 Common stock $308,800 Additional Paid-in Capital-Common $154,400, 38600 shares at $12 per share
b. Cash $ 110,400 10% Preferred stock $69,000 Additional Paid-in Capital-Preferred $41,400, 6,900 shares at $16 per share
c. Cash $142,600,000 Common stock $40,000 Additional Paid-in Capital-Common $35,000 10% Preferred stock $26,000 Additional Paid-in Capital-Preferred $41,600 5,000 shares of the common stock at $15 per share and 2,600 shares of the preferred stock at $26 per share
d. Net income for the year = $55,000
Cash:
Common stock $308,800
Additional Paid-in Capital-Common 154,400
10% Preferred stock 69,000
Additional Paid-in Capital-Preferred 41,400
Common stock 40,000
Additional Paid-in Capital-Common 35,000
10% Preferred stock 26,000
Additional Paid-in Capital-Preferred 41,600
Total cash $716,200