Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 19

Reporting the Stockholders Equity Section of the Balance Sheet
Shelby Corporation was organized in January 2013 to operate an air conditioning sales and service business. The charter issued by the stare authorized the following capital stock:

During January and February 2013, the following stock transactions were completed:
a. Collected $400,000 cash and issued 20,000 shares of common stock.
b. Issued 15,000 shares of preferred stock at $30 per share; collected in cash.
Net income for 2013 was $50,000; cash dividends declared and paid at year-end were $10,000.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31, 2013.