Question

Can someone please help explain how to solve this problem and find the numbers. Thank you.

E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet [LO 11-2, LO 11-4] 25 pints North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: a. Issued a total of 33,000 shares of the common stock for $13 per share. b. Issued 12,000 shares of the preferred stock at $14 per share. c. Issued 2,300 shares of the common stock at $18 per share and 1,200 shares of the preferred stock at $14. d. Net income for the first year was $41,000, but no dividends were declared. Required: Prepare the stockholders' equity section of the balance sheet at December 31. NORTH WIND AVIATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: Preferred Stock Additional Paid-In Capital, Preferred Stock Common Stock Additional Paid-In Capital, Common Stock I Total Contributed Capital Total Stockholders' Equity

Answer 1

Balance Sheet (Partial)
At December 31
Stockholder's Equity
Contributed Capital
Preferred Stock	132000	=(12000*10)+(1200*10)
Additional Paid in Capital,Preferred Stock	52800	=12000*(14-10)+1200*(14-10)
Common Stock	35300	=(33000*1)+(2300*1)
Additional Paid in Capital,Common Stock	435100	=33000*(13-1)+2300*(18-1)
Total Contributed Capital	655200
Retained Earnings	41000
Total Stockholder's Equity	696200