Kidwell, Inc., is authorized to issue 5,000,000 shares of no- par common stock and 800,000 shares of

Question:

Kidwell, Inc., is authorized to issue 5,000,000 shares of no- par common stock and 800,000 shares of $ 30 par value preferred stock. During its first year of operation, the company issued 1,200,000 shares of common stock for a total amount of $ 20,400,000 and 250,000 shares of preferred stock for a total of $ 8,750,000. The firm has net income of $ 535,000 for the year, but it declared no dividends. Prepare the shareholders’ equity section of the balance sheet as it would appear after the first year’s operation.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...