Stockholders' Equity
Response to the following problem:
Wilk Manufacturing Corporation completed the following transactions during its first year of operation, 2010:
1. The state authorized the issuance of 30,000 shares of $5 par common stock; 15,000 shares were issued at $22 per share.
2. The state authorized the issuance of 6,000 shares of $50 par preferred stock. All 6,000 shares were issued at $70 per share.
3. Wilk reacquired 1,000 shares of its outstanding common stock at $18 per share. The cost method is used to account for treasury stock.
4. Wilk invested $50,000 of excess cash, not needed to finance operations, in long-term available-for-sale equity securities. At year-end, the market value of these securities was $47,500.
5. Wilk sold 500 shares of treasury stock for $23 per share.
6. Net income for the first year of operations was $16,000. No dividends were declared.
Required:
Prepare the stockholders' equity section (and any related notes to the financial statements) of the Wilk Manufacturing Corporation balance sheet as of December 31, 2010.