Question

2 Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following Preferred stock, 9 percent, par value $6 per share, 5,900 shares authorized During the year, the following transactions took place in the order presented a Sold and issued 21,800 shares of common stock at $12 cash per share. b. Sold and issued 1,100 shares of preferred stock at $16 cash per share. c. At the end of the year, the accounts showed net income of $40,300. No dividends were declared. 1. Prepare the stockholders' equity section of the balance sheet at the end of the year. Balance Sheet (Partial 5

Answer 1

Tandy Incorporated
Balance sheet (Partial)
At December 31, this year
Stockholder's Equity
Contributed Capital:
Common stock-$5 par, 1,07,000 Shares authorized and 21,800 Shares issued	$5 X 21,800	$ 1,09,000
Paid in capital in excess of par value, Common stock	($12-$5) X 21,800	$ 1,52,600
Preferred stock-$6 par, 5,900 Shares authorized and 1,100 Shares issued	$6 X 5,900	$     35,400
Paid in capital in excess of par value, Preferred stock	($16-$6) X 5,900	$     59,000
Total Contributed Capital
Retained earnings
Net Income		$     40,300
Total Stockholder's Equity		$ 3,96,300