Below is shown the stockholders ' equity section of Tulip Company 's balance sheet at December 31, 2007 Common stock , $2 par value, 5,400,000 shares authorized, 2,200,000 shares issued and outstanding $ 4,400,000 Paid in capital in excess of par value 30,800,000 Retained earnings 46,000,000 Total ...

A The Stockholders Equity section at December 31 2008 would report Common stock 2 par value 5400000 ...

Below is shown the stockholders' equity section of Tulip Company's balance sheet at December 31, 2007. Common

Question:

Below is shown the stockholders' equity section of Tulip Company's at December 31, 2007.
, $2 5,400,000 shares
authorized, 2,200,000 shares issued and outstanding ...... $ 4,400,000
Paid-in capital in excess of 30,800,000 Retained earnings .. 46,000,000
Total stockholders' equity .................. $81,200,000

All of the following occurred in year 2005 and were properly recorded.
1. The company purchased 30,000 shares of its own stock at $21 per share on January 2.
2. The company purchased 20,000 shares of the Sumo at $6 per share on February 14.
3. The company declared and issued a 10% stock on March 2.The fair market value of the stock at that time was $25 per share.
4. The company declared and paid a cash of$0.40 on its common stock on July 21.
5. The company reported a net loss of$5,200,000 on December 31.

Required
A. Prepare the stockholders' equity section as of December 31, 2008 after all the events described above have been properly accounted for.
B. Describe the effects on the financing section of the year 2008 statement of cash flows

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...