Question: Kidwell Inc is authorized to issue 5 000 000 shares of no
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.
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