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United Resources Company obtained a charter from the state in January of this year. The charter authorized 212,000 shares of common stock with a par value of $2. During the year, the company earned $478,000
Also during the year, the following selected transactions occurred in the order given:
a. Sold 93,000 shares of the common stock in an initial public offering for $14 per share.
b. Repurchased 28,000 shares of the previously issued shares for $17 per share.
c. Resold 10,000 shares of treasury stock for $20 per share.
Required:
Problem 1: Prepare the stockholders' equity section of the balance sheet at the end of the year.
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