In Draco Corporations first year of business, the following transactions affected its equity accounts. Prepare the stockholders

Question:

In Draco Corporation’s first year of business, the following transactions affected its equity accounts. Prepare the stockholders’ equity section of Draco’s balance sheet as of December 31.Issued 4,000 shares of $2 par value common stock for $18. It authorized 20,000 shares.Issued 1,000 shares of 12%, $10 par value preferred stock for $23. It authorized 3,000 shares.Reacquired 200 shares of common stock for $30 each.Retained earnings is impacted by reported net income of $50,000 and cash dividends of $15,000.

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... 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,...

Fantastic news! We've Found the answer you've been seeking!