Witt Corporation received its charter during January 2014

P11-2 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.

TUTORIAL PREVIEW

WITT CORPORATION
Balance Sheet (Partial)
At December 31, 2014
Stockholders’ equity:
Contributed capital:
Preferred stock authorized 21,000 shares; issued and outstanding, 6,500 shares	$          65,000

File name: P11-2 Witt Corporation .xlsx File type: . .xlsx  PRICE:5