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North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock:...

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Accounting

North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 60,000 shares.

The following transactions occurred during the first year of operations in the order given:

  1. Issued a total of 47,000 shares of the common stock for $13 per share.
  2. Issued 11,000 shares of the preferred stock at $14 per share.
  3. Issued 3,700 shares of the common stock at $18 per share and 1,100 shares of the preferred stock at $14.
  4. Net income for the first year was $55,000, but no dividends were declared.

Prepare the stockholders' equity section of the balance sheet on December 31.

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