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On January 1, 2011, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000 shares of common stock in exchange for $135,600 cash. No other shares were issued during 2011, and no shares were repurchased by the corporation. On November 1, 2011, the corporation’s major stockholder sold 300 shares to another stockholder for $43,800. The corporation reported net income of $25,300 for 2011.
Required: Prepare the stockholders equity section of Mulcahy’s balance sheet at December 31, 2011.
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