P112 Preparing the Stockholders Equity Section of the Balanc

P11-2 Preparing the Stockholders Equity Section of the Balance Sheet
Witt Corporation received its charter during January 2014. The charter authorized the following capital stock:
	Preferred stock: 10 percent, par $10, authorized 21,000 shares
	Common stock: par $8, authorized 50,000 shares.
During 2014, the following transactions occurred in the order given:
a.	Issued a total of 40,000 shares of the common stock to the four organizers at $12 per share.
b.	Sold 5,500 shares of the preferred stock at $16 per share.
c.	Sold 3,000 shares of the common stock at $15 per share and 1,000 shares of the preferred stock at $26.
d.	Net income for the year was $96,000.
Required:
	Prepare the Stockholders’ Equity section of the balance sheet at December 31, 2014.
	WITT CORPORATION
	Balance Sheet (Partial)
	At December 31, 2014
	Stockholders’ equity:
	Contributed capital:
	Common stock
	Preferred stock
	Total contributed capital	639,000
	Total stockholders’ equity

P11-2 Preparing the Stockholders Equity Section of the Balance Sheet
Witt Corporation received its charter during January 2014. The charter authorized the following capital stock:
	Preferred stock: 10 percent, par $10, authorized 21,000 shares
	Common stock: par $8, authorized 50,000 shares.
During 2014, the following transactions occurred in the order given:
a.	Issued a total of 40,000 shares of the common stock to the four organizers at $12 per share.
b.	Sold 5,500 shares of the preferred stock at $16 per share.
c.	Sold 3,000 shares of the common stock at $15 per share and 1,000 shares of the preferred stock at $26.
d.	Net income for the year was $96,000.
Required:
	Prepare the Stockholders’ Equity section of the balance sheet at December 31, 2014.
	WITT CORPORATION
	Balance Sheet (Partial)
	At December 31, 2014
	Stockholders’ equity:
	Contributed capital:
	Common stock
	Preferred stock
	Total contributed capital	639,000
	Total stockholders’ equity

Solution