Reference no: EM131828433

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.