A company designs and produces a line of golf equipment and golf apparel The company has 100,000 shares of common stock outstanding as of the beginning of Year 1 The company has the following transactions affecting stockholders' equity in Year 1 March 1 Issues 62,000 additional shares of $1 par value common stock for $59 per share May 10 Purchases 5,700 shares of treasury stock for $62 per share June 1 Declares a cash dividend of $1 85 per share to all stockholders of record on June 15 ( Hint Dividends are not paid on treasury stock ) July 1 Pays the cash dividend declared on June 1 October 21 Resells 2,850 shares of treasury stock purchased on May 10 for $67 per share The company has the following beginning balances in its stockholders' equity accounts on January 1, Year 1 Common Stock, $100,000 Additional Paid in Capital, $5,200,000 and Retained Earnings, $2,700,000 Net income for the year ended December 31, Year 1, is $670,000 Required Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1 (Amounts to be deducted should be indicated by a minus sign )

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Posted on Jul 16, 2024

A company designs and produces a line of golf equipment and golf apparel. The company has 100,000 shares of common stock outstanding as of the

A company designs and produces a line of golf equipment and golf apparel. The company has 100,000 shares of common stock outstanding as of the beginning of Year 1. The company has the following transactions affecting stockholders' equity in Year 1.

March	1	Issues 62,000 additional shares of $1 par value common stock for $59 per share.
May	10	Purchases 5,700 shares of treasury stock for $62 per share.
June	1	Declares a cash dividend of $1.85 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)
July	1	Pays the cash dividend declared on June 1.
October	21	Resells 2,850 shares of treasury stock purchased on May 10 for $67 per share.

The company has the following beginning balances in its stockholders' equity accounts on January 1, Year 1: Common Stock, $100,000; Additional Paid-in Capital, $5,200,000; and Retained Earnings, $2,700,000. Net income for the year ended December 31, Year 1, is $670,000. Required: Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1. (Amounts to be deducted should be indicated by a minus sign.)