The Golden Mushroom has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations:

January 2	Issues 100,000 shares of common stock for $16 per share.
February 6	Issues 1,100 shares of 9% preferred stock for $11 per share.
September 10	Purchases 11,000 shares of its own common stock for $21 per share.
December 15	Resells 5,500 shares of treasury stock at $26 per share.

In its first year of operations, The Golden Mushroom has net income of $141,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $990 on all preferred shares outstanding.

Required:

Prepare the stockholders' equity section of the balance sheet for The Golden Mushroom as of December 31, 2024.

Answer rating: 100% (QA)

Shareholders Equity Account Amount Common stock 1 par value 1000000 shares authorized 889000 shares ... View the full answer