Prepare stockholders equity section of company balance sheet

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Reference no: EM132525250

Question - Leslie Lazier is the owner and operator of Lazier Tech, Inc., which was organized in 2017. The company's accountant resigned suddenly in early 2018 without leaving a contact number and Leslie was left with several unanswered questions as it relates to the composition of the company's paid in capital and the total stockholders' equity. At December 31, 2017, the Lazier Tech reported the following extract from the company's balance sheet.

Preferred stock, 6%, $40 par, 1,000,000 shares authorized, none issued $0

Common stock, $4 par, 600,000 shares authorized, 100,000 shares issued and outstanding $400,000

Paid-in capital in excess of par-common $120,000

Retained earnings $60,000

During 2018, the company completed the following selected transactions:

a. Issued for cash 25,000 shares of preferred stock at par value.

b. Issued for cash 40,000 shares of common stock at a price of $10 per share.

c. Net income for the year was $240,000, and the company declared no dividends.

REQUIRED - Prepare the Stockholders Equity Section of the company's balance sheet at December 31, 2018 based on the information presented and include the following and most show all workings in excel (with formulas):

Information on par values.

The number of shares authorized and issued where necessary.

The sub total for the total paid in capital.

Total stockholders' equity.

Reference no: EM132525250

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