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 81,000 shares of the common stock were sold for $19 per share. At the end of the current year, Resisto has retained earnings of $382,000.

a. Prepare the stockholders’ equity section of the company’s balance sheet at the end of the current year.

	Stockholders' Equity Additional paid-in capital: Total paid-in capital $0 Total stockholders' equity $0

Answer 1

Stockholders' Equity
Common stock (Authorised 100000 shares , Issued 81000 shares)	$ 1,62,000.00
Preferred stock (Authorized 5000 shares, issued 2500 shares at Par value of 100)	$ 2,50,000.00
Additional paid-in capital:
Additional paid-in capital-Common stock	$13,77,000.00
Additional paid-in capital- Preferred stock	$     10,000.00
Total paid-in capital	$17,99,000.00
Retained earnings	$ 3,82,000.00
Total stockholders' equity	$21,81,000.00