Accounting for various stockholders’ equity transactions (Learning Objective 7) 20–25 min.

At December 31, 2013, Dungy Corp. reported the following stockholders’ equity:

Paid-in Capital:

Common Stock, $4 par, 200,000 authorized, 80,000 shares issued Additional Paid-in Capital Total Paid-in Capital Retained Earnings Subtotal Less: Treasury Stock, 2,600 shares at cost Total Stockholders’ Equity

$ 320,000 130,000

$ 450,000 645,000

$1,095,000

(93,600)

$1,001,400 During 2014, Dungy Corp. completed these transactions and events in this order:

a. Sold 800 shares of treasury stock for $48 per share; the cost of these shares was

$36 per share.

b. Issued 1,200 shares of common stock at $26 per share.

c. Net income for the year was $212,000.

d. Declared and paid cash dividends of $160,000.

Requirement 1. Prepare Dungy’s statement of stockholders’ equity for the year ended December 31, 2014.

AppendixLO1