Exercise 10-8 (Algo) Prepare the stockholders' equity section (LO10-7) For Feet's Sake has two classes of...

Transcribed Image Text:

Exercise 10-8 (Algo) Prepare the stockholders' equity section (LO10-7) For Feet's Sake has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issues 100,000 shares of common stock for $20 per share. February 6 Issues 1,500 shares of 8% preferred stock for $12 per share. September 10 Purchases 10,000 shares of its own common stock for $25 per share. December 15 Resells 5,000 shares of treasury stock at $30 per share. In its first year of operations, For Feet's Sake has net income of $145,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $1,200 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for For Feet's Sake as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) FOR FEET'S SAKE Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' equity: Required: Prepare the stockholders' equity section of the balance sheet for For Feet's Sake as of December 31, 2024. (Amounts to be deduct should be indicated by a minus sign.) FOR FEET'S SAKE Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' equity: Total paid-in capital Total stockholders' equity $ 0 Exercise 10-8 (Algo) Prepare the stockholders' equity section (LO10-7) For Feet's Sake has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issues 100,000 shares of common stock for $20 per share. February 6 Issues 1,500 shares of 8% preferred stock for $12 per share. September 10 Purchases 10,000 shares of its own common stock for $25 per share. December 15 Resells 5,000 shares of treasury stock at $30 per share. In its first year of operations, For Feet's Sake has net income of $145,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $1,200 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for For Feet's Sake as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) FOR FEET'S SAKE Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' equity: Required: Prepare the stockholders' equity section of the balance sheet for For Feet's Sake as of December 31, 2024. (Amounts to be deduct should be indicated by a minus sign.) FOR FEET'S SAKE Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' equity: Total paid-in capital Total stockholders' equity $ 0