Prepare stockholder equity section of company

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When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $ 100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $ 2 stated value common stock. Half of the preferred stock was issued at a price of $ 103 per share, and 70,000 shares of the common stock were sold for $ 13 per share. At the end of the current year, Resisto has retained earnings of $ 382,000.

a. Prepare the stockholders’ equity section of the company’s balance sheet at the end of the current year.

b. Assume Resisto Systems’s common stock is trading at $ 24 per share and its preferred stock is trading at $ 107 per share at the end of the current year. Would the stockholders’ equity section prepared in part a be affected by this additional information?

Reference no: EM13141384

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