Witt Corporation received its charter during January of this

Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $11 par value, 22,700 shares authorized Common stock: $9 par value, 50,500 shares authorized During the year, the following transactions occurred in the order given: a. Issued a total of 39,800 shares of the common stock at $13 cash per share. b. Sold 7,500 shares of the preferred stock at $17 cash per share. c. Sold 3,300 shares of the common stock at $16 cash per share and 1,800 shares of the preferred stock at $27 cash per share. d. Net income for the year was $65,000. Required: Prepare the stockholders\' equity section of the balance sheet at the end of the year. Use exact numbers please

Solution

Stockholder\'s Equity

Amount

Authorized Capital

Preferred Stock , 10%

$        249,700

Common Stock

$        454,500

$        704,200

Paid - in Capital

Preferred Stock , 10%

(7500 + 1800)

$        102,300

Common Stock

(39800 + 3300)

$        387,900

Paid in Capital in excess of par value - Preferred Stock

(6 + 16) * 9300

$        204,600

Paid in Capital in excess of par value - Common Stock

(4 + 7) * 43100

$        474,100

Retained Earnings for the year ended

$          65,000

Total Stockholder\'s Equity

$    1,233,900