Exe 11.3 When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares

of $100 par value, 8 percent 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 70,000 shares of the

common stock were sold for $13 per share. At the end of the current year, Resisto has retained

earnings of $475,000.

a. Prepare the stockholders' equity section of the company's balance sheet at the end of the

current year.

b. Assume Resisto Systems'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?