Webber Company has provided you with the following information concerning its shareholders equity: Common stock, $

Question:

Webber Company has provided you with the following information concerning its shareholders’ equity:

• Common stock, $ 1 par value, 1,000,000 shares authorized, 650,000 shares issued, 600,000 shares outstanding. The average additional paid- in capital was $ 30 per share when the shares were issued.

• Preferred stock, $ 100 par value, 500,000 shares authorized, 350,000 shares issued and outstanding. There is no additional paid-in capital on preferred shares. The preferred stock pays a 6 percent dividend and is cumulative.

• The beginning balance of retained earnings was $ 1,455,000. Dividends were declared during the year. The common stock dividend was $ 1.50 per share. The net income for the period was $ 5,980,500. Treasury stock was purchased during the year for $ 20 per share.

Prepare the shareholders’ equity section of the balance sheet for Webber.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...