The equity section of the December 31, 2019, balance sheet for Delicious Alternative Desserts Inc. showed the following: Delicious Alternative Desserts Inc. Equity Section of the Balance Sheet December 31, 2019Contributed capital: 

Preferred shares, $0.40 cumulative; 80,000 shares authorized; 

 50,000 shares issued and outstanding                                                           $200,000 

Common shares; 250,000 shares authorized;                                                  110,000 

shares issued and outstanding                                                                           176,000 

Total contributed capital                                                                                    $376,000 

Retained earnings                                                                                                 148,000 

Total equity                                                                                                           $524,000 

During the year 2020, the company had the following transactions affecting equity accounts: 

Jan. 3 Sold 10,000 common shares for a total of $17,200 cash. 

Mar. 1 Sold 5,000 preferred shares at $3.80 each; cash.

June15 Exchanged 7,000 common shares for equipment with a fair market value of $21,000. The last common share trade was dated March 15 at $4.78. 

Dec. 31 Closed the Income Summary account, which showed a credit balance of $270,000. The board of directors had not declared dividends for the past two years (2019 and 2020).

Prepare the equity section as at December 31, 2020.

Answer rating: 100% (QA)

Calculation Date General Journal Debit Credit Jan 3 Cash 17200 Common stock 17200 To record issue of ... View the full answer