Question

When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $2 stated value common stock. Half of the preferred stock was issued at a price of $104 per share, and 94,000 shares of the common stock were sold for $11 per share. At the end of the current year, Resisto has retained earnings of $382,000. . a. Prepare the stockholders' ect ect a. Prepare the stockholders' equity section of the company's balance sheet at the end of the current year. Stockholders' Equity Cumulative preferred stock | $ 250.000 Common stock 188.000 Additional paid in capital Cumulative preferred stock Common stock 9900 1,033,990 Total paid.in capital Total stockholders' equity $1,481 898

Answer 1

a.

Stockholders' Equity
Cumulative preferred stock (2500 x $100)	250000
Common stock (94000 x $2)	188000
Additional paid-in capital
Cumulative preferred stock (2500 x $4)	10000
Common stock (94000 x $9)	846000
Total paid-in capital	1294000
Retained earnings	382000
Total stockholders' equity	1676000