Notebook Company Had the Following Transactions in 2014, Its First

question 110

Essay

Notebook Company had the following transactions in 2014, its first year of operations.
• Issued 2,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $50.00
per share.
• Issued 100 shares of $100 par value preferred stock. Shares were issued at par.
• Earned net income of $95,000.
• Paid dividends of $5,000.
The company charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock.
Please provide the stockholders' equity section of the balance sheet at December 31, 2014. Include information on par values, and the number of shares authorized and issued, where necessary. No subtotals are needed for total paid-in capital, but please show total stockholders' equity on the bottom line.
$$\begin{array} { | l | l | l | l | l | } \hline \text { Account } & \text { Par value info } & \text { Shares authorized } & \text { Shares issued } & \text { Balance } \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline\end{array}$$

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.

Non Binding Price Floor

A non binding price floor is set below the market equilibrium price, having no effect on the market because it does not restrict supply or demand.

Explicit And Implicit Coercion

Refers to the overt and subtle ways in which individuals or groups may be forced or pressured into behaving in certain ways.

Desirable Consequences

Positive outcomes or benefits that result from a particular action or set of actions.