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P11-2 Preparing the Stockholders Equity Section of the Balance Sheet LO11-3, 11-7    
             
Witt Corporation received its charter during January 2014. The charter authorized the following capital stock:
             
  Preferred stock: 10 percent, par $10, authorized 21,000 shares      
  Common stock: par $8, authorized 50,000 shares.        
             
During 2014, the following transactions occurred in the order given:      
             
a. Issued a total of 40,000 shares of the common stock to the four organizers at $12 per share.  
b. Sold 5,500 shares of the preferred stock at $16 per share.      
c. Sold 3,000 shares of the common stock at $15 per share and 1,000 shares of the preferred stock at $26.
d. Net income for the year was $96,000.          
             
Required:          
  Prepare the Stockholders’ Equity section of the balance sheet at December 31, 2014.  
  Possible input areas are shaded.          

 

 

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