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On January 5, 2017, Vaughn Corporation received a charter granting the right to issue 4,800...

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Accounting

On January 5, 2017, Vaughn Corporation received a charter granting the right to issue 4,800 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 49,300 shares of $10 par value common stock. It then completed these transactions.

Jan. 11

Issued 20,400 shares of common stock at $16 per share.

Feb. 1

Issued to Sanchez Corp. 4,000 shares of preferred stock for the following assets: equipment with a fair value of $52,700; a factory building with a fair value of $175,000; and land with an appraised value of $292,000.

July 29

Purchased 1,800 shares of common stock at $16 per share. (Use cost method.)

Aug. 10

Sold the 1,800 treasury shares at $13 per share.

Dec. 31

Declared a $0.50 per share cash dividend on the common stock and declared the preferred dividend.

Dec. 31

Closed the Income Summary account. There was a $190,000 net income.

Prepare the stockholders equity section of Vaughn Corporations balance sheet as of December 31, 2017. (Enter account name only and do not provide descriptive information.)

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