P11-2 Preparing the Stockholders Equity Section of the Balance Sheet LO11-3, 11-7 ...

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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.

	WITT CORPORATION
	Balance Sheet (Partial)
	At December 31, 2014
	Stockholders equity:
	Contributed capital:






	Total contributed capital	-


	Total stockholders equity		$ -

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