Question

Required information [The following information applies to the questions displayed below.] Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 par value. During its first year, the following selected transactions were completed: a. Issued 6,800 shares of common stock for cash at $28 per share. b. Issued 2,800 shares of common stock for cash at $31 per share. 3. Prepare the stockholders' equity section as it should be reported on the year-end balance sheet. At year-end, the accounts reflected net income of $300. INCENTIVE CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: OL Total Contributed Capital Total Stockholders' Equity

Answer 1

INCENTIVE CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: Common Stock $ Paid-in Capital in excess of par $ 9,600 ($ 6,800 * $ 1 par value) +($ 2,800 * $ 1 par value) 267,600 ($ 6,800 * $ 27 par value) +($ 2,800 * $ 30 par value) Total contributed capital Net income $ $ 277,200 300 Total stockholders' equity $ 277,500