the golden mushroom has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. the following transactions affect stockholders' equity during 2024, its first year of operations: january 2 issues 100,000 shares of common stock for $31 per share. february 6 issues 2,600 shares of 8% preferred stock for $12 per share. september 10 purchases 10,000 shares of its own common stock for $36 per share. december 15 resells 5,000 shares of treasury stock at $41 per share. in its first year of operations, the golden mushroom has net income of $156,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $2,080 on all preferred shares outstanding.
Required: Prepare the stockholders' equity section of the balance sheet for The Golden Mushroom as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)
THE GOLDEN MUSHROOM
Balance Sheet
(Stockholders’ Equity Section)
December 31, 2024
Stockholders’ equity: Total paid-in capital Total stockholders’ equity
