Overton Company Had the Following Transactions in 2013, Its First

question 36

Essay

Overton Company had the following transactions in 2013, its first year of operations.
• Issued 5,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30.00
per share.
• Earned net income of $200,000.
• Paid dividends of $5.00 per share.
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, 2013. 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:

Bronchioles

Small branches of the bronchi that lead to the air sacs in the lungs, involved in the process of gas exchange.

Bronchi

The main passageways directly attached to the trachea that carry air in and out of the lungs.

Pneumothorax

A medical condition where air enters the space between the lung and chest wall, causing the lung to collapse.

Pneumonitis

Inflammation of lung tissue that is not caused by infection.