Accounting and Financial Reporting II

Directions - Part Two

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

Contributed capital in excess of par value, common250,000

Retained earnings500,000

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

Total stockholders' equity$930,000

The following occurred during 2XX5:

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

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

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

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

Required:

For EACH stockholders' equity account listed above, 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.

Contributed

Common

capital in

Retained

Treasury

Stock ($)

excess of par

earnings

stock

Total

Beginning balance

Net income

Issue common stock

Reissue treasury stock

Cash dividends

Ending balance