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Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following Common stock, $7 par value, 117,000 shares authorized Preferred stock, 11 percent, par value $12 per share, 5.700 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,200 shares of common stock at $24 cash per share. b. Sold and issued 2300 shares of preferred stock at $28 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. Answer is not complete TANDY, INCORPORATED Balance Sheet Partial) At December 31, this year Additional paid in capital, common < Prex 4 of 9 Next > TY

Answer 1

TANDY INCORPORATED Balance sheet (partial) At December 31, this year
Stockholder’s equity
Contributed capital
Common stock	148400
Preferred stock	27600
Additional paid in capital, common stock	360400
Additional paid in capital, preferred stock	36800
Total contributed capital		573200
Retained earnings		41000
Total stockholders’ equity		$614200

No.	General journal	Debit	Credit
1	Cash (21200*24)	508800
	Common stock (21200*7)		148400
	Additional paid in capital, common stock (21200*17)		360400
2	Cash (2300*28)	64400
	Preferred stock (2300*12)		27600
	Additional paid in capital, preferred stock (2300*16)		36800