(Learning Objective 2: Stockholders’ equity section of a balance sheet) Citadel Sporting Goods is authorized to issue 5,000 shares of preferred stock and 10,000 shares of common stock. During a 2 month period, Citadel completed these stock issuance transactions:
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June 23 |
Issued 1,000 shares of $1 par common stock for cash of $16 per share. |
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July 2 |
Issued 300 shares of $4.50, no par preferred stock for $20,000 cash. |
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12 |
Received inventory valued at $15,000 and equipment with market value of $43,000 for 3,000 shares of the $1 par common stock. |
Required
Prepare the stockholders’ equity section of the Citadel Sporting Goods balance sheet for the transactions given in this exercise. Retained earnings has a balance of $49,000. Journal entries are not required.