Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock, $15 par value, 99,800 shares authorized Preferred stock, $41 par value, 8 percent, 60,500 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 79,100 shares of common stock at $30 cash per share. b. Sold 20,800 shares of preferred stock at $71 cash per share. c. Repurchased 5,900 shares of common stock for $27 cash per share. Required: Net income for the year was $90,400; cash dividends declared and paid at year-end were $31,200. Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated with a minus sign. Stockholders' equity: Contributed capital: QUICK FIX-IT CORPORATION Balance Sheet (Partial) At December 31 Common stock Preferred stock Additional paid-in capital, preferred stock Additional paid-in capital, common stock Total contributed capital Retained earnings Treasury stock Total stockholders' equity $ 0 59,200 (159,300) $ (100,100)

Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock, $15 par value, 99,800 shares authorized Preferred stock, $41 par value, 8 percent, 60,500 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 79,100 shares of common stock at $30 cash per share. b. Sold 20,800 shares of preferred stock at $71 cash per share. c. Repurchased 5,900 shares of common stock for $27 cash per share. Required: Net income for the year was $90,400; cash dividends declared and paid at year-end were $31,200. Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated with a minus sign. Stockholders' equity: Contributed capital: QUICK FIX-IT CORPORATION Balance Sheet (Partial) At December 31 Common stock Preferred stock Additional paid-in capital, preferred stock Additional paid-in capital, common stock Total contributed capital Retained earnings Treasury stock Total stockholders' equity $ 0 59,200 (159,300) $ (100,100)

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock, $19 par value, 99,500 shares authorized Preferred stock, $46 par value, 8 percent, 60,000 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 79,300 shares of common stock at $38 cash per share. b. Sold 20,100 shares of preferred stock at $72 cash per share. c. Bought 4,300 shares of common stock from a current stockholder for $22 cash per share. Required: Net income for the year was $91,300; cash dividends declared and paid at year-end were $30,800. Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)
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