Kebler Company was incorporated as a new business on January 1, 2014. The corporate charter approved on

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Kebler Company was incorporated as a new business on January 1, 2014. The corporate charter approved on that date authorized the issuance of 2,000 shares of $100 par, 7% cumulative, nonparticipating preferred stock and 20,000 shares of $5 par common stock. On January 10, Kebler issued for cash 1,000 shares of preferred stock at $120 per share and 8,000 shares of common stock at $80 per share. On January 20, it issued 2,000 shares of common stock to acquire a building site at a time when the stock was selling for $70 per share.
During 2014, Kebler established an employee benefit plan and acquired 1,000 shares of common stock at $60 per share as treasury stock for that purpose. Later in 2014, it resold 100 shares of the stock at $65 per share.
On December 31, 2014, Kebler determined its net income for the year to be $80,000. The firm declared the annual cash dividend to preferred stockholders and a cash dividend of $5 per share to the common stockholders. The dividend will be paid in 2015.


Required
Develop the Stockholders’ Equity category of Kebler’s balance sheet as of December 31, 2014. Indicate on the statement the number of shares authorized, issued, and outstanding for both preferred and common stock.

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...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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