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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

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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 53,000 additional shares of $1 par value common stock for $50 per share. May 10 Purchases 4,800 shares of treasury stock for $53 per share. June 1 Declares a cash dividend of $1.40 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 2,400 shares of treasury stock purchased on May 10 for $58 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, $4,300,000; and Retained Earnings, $1,800,000. Net income for the year ended December 31, Year 1, is $580,000 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.) Answer is complete but not entirely correct. Balance Sheet (Stockholders' Equity Section) December 31, Year 1 Stockholders' Equity: 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, $4,300,000; and Retained Earnings, $1,800,000. Net income for the year ended December 31, Year 1, is $580,000. 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.) Answer is complete but not entirely correct. Balance Sheet (Stockholders' Equity Section) December 31, Year 1 Stockholders' Equity Common Stock 153,000 Additional Paid-in Capital 6,909,000 $ Total Paid-in Capital Retained Earnings Treasury Stock > 7,062,000 2.231.800 X (127.200)

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