omework When Resisto Systems Inc was formed the company was

omework When Resisto Systems, Inc, was formed, the company was authonized 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 $103 per share, and 66.000 shares of the common stock were sold for $18 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 Additional paid in capital Total paid-in capital Total stockholders equityi

Solution

authorise share capital common stock 200000 8% prefered stock 500000 paid in capital common stock 132000 66000*2 8% prefered stock 250000 0.50*5000 * 100 additional paid in capital common stock 1056000 66000*(18-2) preferred stock 7500 (0.50*5000)*(103-100) Retained earnings 382000 total stockholders equity 1827500 (paidin +additional paid in +retained earnings