Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company had the following balances in its stockholders' equity accounts at December 31, 2XX4: Common stock, $10 par, 50,000 shares authorized, 20,000 shares issued$200,000

A company had the following balances in its stockholders' equity accounts at December 31, 2XX4:

Common stock, $10 par, 50,000 shares authorized, 20,000 shares issued$200,000

Paid-in capital in excess of par value, common 250,000

Retained earnings 500,000

Treasury stock, 1,000 shares (20,000)

Total stockholders' equity$930,000

The following occurred during 2XX5:

1)February 3 - Sold and issued 3,000 shares of common stock for a sell price of $72 per share.

2)May 10 - Declared a $0.50 per share cash dividend on common stock.

3)October 12 - Sold 500 shares of treasury stock for $20 per share.

4)December 31 - Net income for the year is $75,000.

Required:

For EACH stockholders' equity account listed, determine the account balance at December 31, 2XX5.Use the matrix format listed below.Be sure to show your supporting calculations and label them to indicate which numbers in the matrix they are supporting.

Common stock Paid in capital excess par Retained earnings Treasury stock Total

Beginning balance

Net income

Issue common stock

Reissue treasury stock

Cash dividends

Ending balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

IFRS Edition

978-1118443965, 1118800532, 9781118800539, 978-0470873991

More Books

Students also viewed these Accounting questions

Question

LO1.2 Describe the role of economic theory in economics.

Answered: 1 week ago