Analyzing stockholders’ equity (Learning Objective 7) 15–20 min.

Columbia Analysts, Inc., reported the following statement of stockholders’ equity for the year ended September 30, 2014.

Columbia Analysts, Inc.

Statement of Stockholders’ Equity Year Ended September 30, 2014 Balance, September 30, 2013 Net Income Cash Dividends Issuance of Stock (5,000 shares)

Stock Dividend Sale of Treasury Stock Balance, September 30, 2014

$3,804 487

(106)

72 0

18

$4,275 TOTAL

$180 16 20

$216

$2,006 56 83 6

$2,151

$1,640 487

(106)

(103)

$1,918

$ (22)

12

$(10)

TREASURY STOCK RETAINED EARNINGS ADDITIONAL PAID-IN CAPITAL COMMON

(Dollar amounts in thousands) STOCK Requirements 1. What is the par value of the company’s common stock?

2. At what price per share did the company issue its common stock during the year?

3. What was the cost of treasury stock sold during the year? What was the selling price of the treasury stock sold? What was the increase in total stockholders’ equity from selling the treasury stock?

4. What overall effect did the stock dividend have on total stockholders’ equity?

AppendixLO1