$7\mathrm{.}14$

points

Return to questionItem $4$

Quick Fix$-$It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock:

Common stock, $$10$ par value, $98,000$ shares authorized

Preferred stock, $$50$ par value, $8$ percent, $59,000$ shares authorized

During January and February of this year, the following stock transactions were completed:

Sold $78,000$ shares of common stock at $$20$ cash per share.

Sold $20,000$ shares of preferred stock at $$80$ cash per share.

Repurchased $4,000$ shares of common stock for $$20$ cash per share.

Required:

Net income for the year was $$210,000$; cash dividends declared and paid at year$-$end were $$50,000.$ Prepare the stockholders' equity section of the balance sheet at the end of the year.

Note: Amounts to be deducted should be indicated with a minus sign.

The retained earning needs to have its own number