Assignment 5: Financial Acct 2

cf_Unit5_P11-2.xlsx

P11-2

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.
	WITT CORPORATION
	Balance Sheet (Partial)
	At December 31, 2014
	Stockholders’ equity:
	Contributed capital:
	Total contributed capital	-
	Total stockholders’ equity		$ -

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.
	WITT CORPORATION
	Balance Sheet (Partial)
	At December 31, 2014
	Stockholders’ equity:
	Contributed capital:
	Total contributed capital	639,000
	Total stockholders’ equity

List1

Accounts payable

Available for sale securities

Bonds payable

Capital in excess of par, common stock

Capital in excess of par, preferred

Cash

Common stock

Discount on bonds payable

Dividends payable

Paid-in capital, stock options

Preferred stock

Premium on bonds payable

Retained earnings

Trading securities

Treasury stock