Global Marine obtained a charter from the state in January 2009, which authorized 1,000,000 shares of common

Question:

Global Marine obtained a charter from the state in January 2009, which authorized 1,000,000 shares of , $5 par value. During the first year, the company earned $429,000, and the following selected transactions occurred in the order given:
a. Sold 700,000 shares of the at $54 per share. Collected the cash and issued the stock.
b. Purchased 25,000 shares at $50 cash per share to use as stock incentives for senior management.

Required:
Prepare the stockholders’ equity section of the at December 31, 2009.

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...