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E11-2 (Algo) Reporting Stockholders' Equity and Determining Dividend Policy [LO 11-2, LO 11-3]

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[The following information applies to the questions displayed below.] Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed:

1. Issued 7,000 shares of common stock for cash at $30 per share.
2. Issued 3,000 shares of common stock for cash at $33 per share.

E11-2 (Algo) Part 3

3. Prepare the stockholders equity section as it should be reported on the year-end balance sheet. At year-end, the accounts reflected a profit of $200.

   incentive corportation

   balance sheet (partial)

   at dec 31

   stockholders equity

   contributed calptal

   total contributed capital

   total stockholders equity