Mesa Company is authorized to issue 1,000,000 shares of its $5 par value common stock and 600,000 shares of its $10 par value preferred stock. During 2018 – its first year of business - the company earned $650,000 of net income and had the following select transactions. No dividends were declared or paid throughout the year. The net income and events below are the only ones that impact Stockholders’ Equity this year.

1. Issued 300,000 shares of common stock for $35 per share

2. Issued 100,000 shares of preferred stock for $55 per share

3. Reacquired 80,000 shares of common stock at $30 per shares

4. Reissued 20,000 shares from treasury for $33 per share

5. Reissued 10,000 shares from treasury for $35 per share

6. Reissued 20,000 shares from treasury for $25 per share

7. Reissued 5,000 shares from treasury for $27 per share

Required: Prepare the Stockholders’ Equity section of the Balance Sheet for Mesa Company as of December 31, 2018.

Answer rating: 100% (QA)

Answer To prepare the Stockholders Equity section of the Balance Sheet for Mesa Company as of Decemb... View the full answer