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 75,000 shares of the common stock were sold for $15 per share. At the end of the current year, Resisto has retained earnings of $382,000.
