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Tandy Company was issued a charter by the state of Indiana on January 15 of...

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Accounting

Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:

Common stock, $8 par value, 115,000 shares authorized

Preferred stock, 15 percent, par value $6 per share, 5,200 shares authorized

During the year, the following transactions took place in the order presented:

a. Sold and issued 21,400 shares of common stock at $12 cash per share.

b. Sold and issued 2,000 shares of preferred stock at $16 cash per share.

c. At the end of the year, the accounts showed net income of $41,000. No dividends were declared.

Required:

1. Prepare the stockholders equity section of the balance sheet at the end of the year.

TANDY, INCORPORATED

Balance Sheet (Partial)

At December 31, this year

Stockholders equity:

Contributed capital:

Common stock

?

Preferred stock

?

Additional paid-in capital, common stock

?

Additional paid-in capital, preferred stock

?

Total contributed capital

Retained earnings

?

Total stockholders equity

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