Egbert Company has two classes of capital stock outstanding: 10%,$20 par preferred and $1 par common. During

Question:

Egbert Company has two classes of capital stock outstanding: 10%,$20 par preferred and $1 par common. During the fiscal year ended November 30, 2008, the company was active in transactions affecting the stockholders' equity. The following summarizes these transactions:

Balances of the accounts in the Stockholders' Equity section of the November 30, 2007, balance sheet were
Preferred stock, 60,000 shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,200,000
Common stock, 200,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Paid-in capital in excess of par'preferred . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Paid-in capital in excess of par'common . . . . . . . . . . . . . . . . . . . . . . . 12,600,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 780,000

Dividends were paid at the end of the fiscal year on the common stock at $1.10 per share and on the preferred stock at the preferred rate. Net income for the year was $700,000.

Instructions:
Based on the preceding data, prepare the Stockholders' Equity section of the balance sheet as of November 30,2008.

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...