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Business, 24.09.2020 23:01, TeenOlaflover
When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8% cumulative preferred stock, and 100,000 shares of $2 stated value common stock. Half of the preferred stock was issued at a price of $103 per share, and 59,000 shares of the common stock were sold for $22 per share. At the end of the current year, Resisto has retained earnings of $382,000.
1. Prepare the stockholder's equity section of the company's balance at the end of the current year.
2. Assume Resisto System’s common stock is trading at $24 per share and its preferred stock is trading at $107 per share at the end of the current year. Would the stockholders’ equity section prepared in part a be affected by this additional information?
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