On January 1, 2022, Kimbel Inc. had these stockholders equity balances. Common Stock, $1 par (2,000,000 shares

Question:

On January 1, 2022, Kimbel Inc. had these stockholders’ equity balances.

Common Stock, $1 par (2,000,000 shares authorized,

600,000 shares issued and outstanding).....................$ 600,000

Paid-in Capital in Excess of Par Value.....................1,500,000

Retained Earnings.....................700,000

Accumulated Other Comprehensive Income.....................60,000

During 2022, the following transactions and events occurred.

1. Issued 50,000 shares of $1 par value common stock for $3 per share.

2. Issued 60,000 shares of common stock for cash at $4 per share.

3. Purchased 20,000 shares of common stock for the treasury at $3.80 per share. 4. Declared and paid a cash dividend of $207,000.

5. Earned net income of $410,000.

6. Had other comprehensive income of $17,000.

Instructions

Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.

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... 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,...