RiteSide Limited was issued a charter on January 15, 2014, that authorized the following shares: Common shares:

Question:

RiteSide Limited was issued a charter on January 15, 2014, that authorized the following shares:
Common shares: no par vales: 100,000 shares: one vote per share
Preferred shares: 7 percent: no $10 per share: 5,000 shares: nonvoting
During 2014, the following selected transactions were completed in the order given:
a. Issued 20,000 common shares at $18 cash per share.
b. Issued 3,000 preferred shares at $22 cash per share.
At the end of 2014, the accounts showed net income of $38,000.
Required
1. Prepare the shareholders' equity section of the at December 31, 2014.
2. Assume that you are a common shareholder. If RiteSide Limited needed additional capital, would you prefer to have it issue additional common shares or additional pre-
ferred shares? Explain.
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,...