Reference no: EM132017987

Question - Tandy, Incorporated, was issued a charter on January 15, 2011, that authorized the following capital stock:

Common stock, no-par, 107,000 shares

Preferred stock, 5 percent, par value $11 per share, 5,900 shares

The board of directors established a stated value on the no-par common stock of $13 per share. During 2011, the following selected transactions were completed in the order given:

a. Sold and issued 21,400 shares of the no-par common stock at $22 cash per share.

b. Sold and issued 1,400 shares of preferred stock at $26 cash per share.

c. At the end of 2011, the accounts showed net income of $41,100.

Required: Prepare the stockholders' equity section of the balance sheet at December 31, 2011.