Exercise 13-14 (Algo) Preparing stockholders equity section LO P1, C2, P3, C3

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

• Issued 4,200 shares of $2 par value common stock for $20. It authorized 20,000 shares.
• Issued 1,050 shares of 12%, $10 par value preferred stock for $25. It authorized 3,000 shares.
• Reacquired 210 shares of common stock for $32 each.
• Retained earnings is impacted by reported net income of $52,000 and cash dividends of $16,000.

Prepare the stockholders equity section of Dracos balance sheet as of December 31.

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

Exercise 13-14 (Algo) Preparing stockholders equity section LO P1, C2, P3, C3

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

• Issued 4,200 shares of $2 par value common stock for $20. It authorized 20,000 shares.
• Issued 1,050 shares of 12%, $10 par value preferred stock for $25. It authorized 3,000 shares.
• Reacquired 210 shares of common stock for $32 each.
• Retained earnings is impacted by reported net income of $52,000 and cash dividends of $16,000.

Prepare the stockholders equity section of Dracos balance sheet as of December 31.

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