Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:
Common stock, $8 par value, 121,000 shares authorized
Preferred stock, 9 percent, par value $8 per share, 5,300 shares authorized
During the year, the following transactions took place in the order presented:
a. Sold and issued 21,400 shares of common stock at $12 cash per share.
b. Sold and issued 2,000 shares of preferred stock at $16 cash per share.
c. At the end of the year, the accounts showed net income of $41,000. No dividends were declared.
Required:
Prepare the stockholders' equity section of the balance sheet at the end of the year.
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Home » Business » Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $8 par value, 121,000 shares authorized Preferred stock, 9 percent, par value $8 per share, 5,300 shares