Quick fix-it corporation was organized in January 2011 to operate severl car repair businesses in a large metropolitan area. The charter issued by state authorized the following capital stock:
Common stock- $10 par value, 98,000 shares
Preferred stock- $50 par value, 8%, 59,000 shares
During Jan & Feb 2011, the following stock transactions were completed.
a. sold 78,000 shares of common stock at $20 per share and collected cash
b. sold 20,000 shares of preferred stock at $80 per share, collected the cash and immediately issued the stock.
c. bought 4,000 shares of common stock from a current stockholder for $20 per share.
Required: Net income for 2011 was $90,000; cash divdiends declared and paid at year end were $30,000. Prepare the stockholders equity section of the balance sheet at December 31,2011.