On January 1, 2010 Fiberglass Industries was authorized to issue 750,000 shares of 3.00 par common stock,
Question:
On January 1, 2010 Fiberglass Industries was authorized to issue 750,000 shares of 3.00 par common stock, and 40,000 shares of 4% $25 par cumulative preferred stock.
Required: Using the information below, prepare the Stockholders' Equity Section of the Balance Sheet at December 31, 2011.
2010:
Jan 4th issued 100,000 shares common stock at $5/ share.
Jan 5th issued 10,000 shares preferred stock at $40/ share.
Feb 1st Issued 60,000 shares of common stock in exchange for a shop with an estimated fair market value of $367,500.
Aug 31st Declared a $.20 cash dividend on common stock.
Dec 31st Net Income was $1,537,900 for 2010.
2011:
Mar 1st Declared and distributed a 5% common stock dividend. The company's common stock was selling for $6 per share when the stock dividend was declared.
May 15th Purchase 4,000 shares of their own common stock for $7/share.
Aug 31st Declared a $.25 cash dividend on common stock.
Nov 15th Sold 2,000 shares of the treasury stock for 22,000 Dec 31st
Net income was $1,323,380 for 2011.
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley