Nash Company has the following accounts among the items on the balance sheet at January 1, 2014:

Question:

Common Stock, $10 par, 10,000 shares authorized, 9,000 issued, 8,000 outstanding
Preferred Stock, $100 par, 8%, cumulative, 1,000 shares authorized, issued, and outstanding

Retained Earnings.........................................................................................................$100,000
Additional Paid-In Capital...............................................................................................200,000
Treasury Stock, 1,000 shares, common stock................................................................20,000

During 2014, the company issued 500 shares of common stock at $14 per share and reissued 400 shares of treasury stock at $20 per share. The company reported a net income of $60,000 for 2014.

Required
Develop the Stockholders’ Equity section for Nash Company at December 31, 2014.

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...

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