A computer virus destroyed some of the financial information for Pasquale Companys stockholders equity section. You have been asked to compute the missing account balances. The only information you can recover from the computers backup system is presented here:

	December 31, 2016	December 31, 2017
Preferred stock	$3,000	$3,000
Common stock	8,000	a.???
Paid-in capital in excess of par, preferred stock	1,500	1,500
Paid-in-capital in excess of par, common stock	12,000	b.???
Paid-in capital, treasury stock	0	c.???
Retained earnings	18,200	7,400
Treasury stock	0	(7,000)
Total stockholders equity	42,700	d.????

During 2017, 7,000 shares of common stock with a par value of $1 were issued when the market price per share was $12.

Cash dividends of $25,000 were paid to preferred shareholders.

Pasquale Company acquired 3,000 shares of common stock at $14 to hold as treasury stock.

Pasquale Company reissued 2,500 shares of treasury stock for $16.

Calculate the account balances for:

Common Stock

Paid-In Capital in Excess of Par, Common Stock

Paid-In Capital, Treasury Stock

Stockholders Equity

How much net income did Pasquale Company report for 2017?

To solve these, it is helpful to put together the journal entries for the transactions a-d, then calculate the account balances and net income.

a.
b.
c.
d.

Balance of Common Stock:

Balance of Paid-In Capital in Excess of Par, Common Stock:

Balance of Paid-In Capital, Treasury Stock:

Balance of Stockholders Equity:

Net Income Reported in 2017:

Beginning Retained Earnings

+ Net Income

-Dividends

= Ending Retained Earnings