Exercise 11-14 (Algo) Preparing stockholders' equity section LO P1, C2, P3, C3 In Draco Corporation's first year of business, the following transactions affected its equity accounts. Issued 6,000 shares of $2 par value common stock for $38. It authorized 20,000 shares. Issued 1,500 shares of 12%, $10 par value preferred stock for $43. It authorized 3,000 shares. Reacquired 300 shares of common stock for $50 each. Retained earnings is impacted by reported net income of $70,000 and cash dividends of $25,000. Prepare the stockholders' equity section of Draco's balance sheet as of December 31. Note: Amounts to be deducted should be indicated by a minus sign. DRACO CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Common stock-$2 par value Preferred stock-$10 par value Retained earnings Paid-in capital in excess of par value, common stock Paid-in capital in excess of par value, preferred stock Less: Cost of treasury stock Total stockholders' equity $ LA $ 12,000 15,000 27,000

Exercise 11-14 (Algo) Preparing stockholders' equity section LO P1, C2, P3, C3 In Draco Corporation's first year of business, the following transactions affected its equity accounts. - Issued 6,000 shares of $2 par value common stock for $38. It authorized 20,000 shares. - Issued 1,500 shares of 12%,$10 par value preferred stock for $43. It authorized 3,000 shares. - Reacquired 300 shares of common stock for $50 each. - Retained earnings is impacted by reported net income of $70,000 and cash dividends of $25,000. Prepare the stockholders' equity section of Draco's balance sheet as of December 31 . Note: Amounts to be deducted should be indicated by a minus sign