North Wind Aviation received its charter during 2013 January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: a. Issued a total of 36,000 shares of the common stock for $19 per share. b. Issued 12,000 shares of the preferred stock at $20 per share. c. Issued 2,600 shares of the common stock at $24 per share and 1,200 shares of the preferred stock at $20. d. Net income for the first year was $44,000, but no dividends were declared. Required:Prepare the stockholders equity section of the balance sheet at December 31, 2013.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.