Question

Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock. $19 par value, 99,600 shares authorized Preferred stock, $43 par value, 8 percent, 59,300 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 79,300 shares of common stock at $38 cash per share. b. Sold 20,200 shares of preferred stock at $74 cash per share. c. Bought 5,100 shares of common stock from a current stockholder for $13 cash per share. Required: Net income for the year was $91,800; cash dividends declared and paid at year-end were $31,300. Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.) QUICK FIX-IT CORPORATION Balance Sheet (Partial) At December 31, This year Stockholders' equity: Contributed capital: Total contributed capital Total contributed capital and retained earnings Total stockholders' equity

Answer 1

QUICK FIX - IT CORPORATION Balance Sheet (PARTIAL) AT December 31, This Year Stockholder's Equity; Contributed Capital; Common Stock Preferred Stock Additional Paid in Capital, Common Stock Additional Paid in Capital, Preferred Stock Total Contributed Capital Retained Earnings Total Contributed Capital and Retained Earnings Treasury Stock Total Stockholder's Equity 1,506,700 868,600 1,506,700 626,200 4,508,200 60,500 4,568,700 (66,300) 4,502,400 58