The Clothing Cove has two classes of stock authorized: 7%, $10 par preferred, and $1
par value common. The following transactions
affect stockholders' equity during 2024
,
its first year of operations:
January 2
February 6
September 10
December 15
Issues 100,000 shares of common stock for $15 per share.
Issues 1,000 shares of 7% preferred stock for $13 per share.
Purchases 12,000 shares of its own common stock
for $20 per
share.
Resells 6,000 shares of treasury stock at $25 per
share.
In its first year of operations, The Clothing Cove has net income of $140,000 and pays
dividends at the end of the year of $94,000 ($1 per share) on all
common shares
outstanding and $700 on all preferred shares outstanding.
Required:
Prepare the stockholders' equity section of the balance sheet for The Clothing Cove as
of December 31, 2024. (Amounts to be deducted should be indicated by a minus
sign.)
THE CLOTHING COVE
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' equity:
Common stock $ 100,000
Preferred stock $ 10,000
Additional paid-in capital
Total paid-in capital
Treasury stock