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Can someone help please, I can't seem to quite get it correct. Company A designs and produces a line of golf equipment and golf apparel.
Can someone help please, I can't seem to quite get it correct.
Company A designs and produces a line of golf equipment and golf apparel. Company A has 100,000 shares of common stock outstanding as of the beginning of Year 1. Company A has the following transactions affecting stockholders' equity in Year 1. March 1 Issues 55,000 additional shares of $1 par value common stock for $52 per share. May 10 Purchases 5,000 shares of treasury stock for $55 per share. June 1 Declares a cash dividend of $1.50 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 2,500 shares of treasury stock purchased on May 10 for $60 per share. Company A has the following beginning balances in its stockholders' equity accounts on January 1, Year 1: Common Stock, $100,000; Additional Paid-in Capital, $4,500,000; and Retained Earnings, $2,000,000. Net Income for the year ended December 31, Year 1, is $600,000. Required: Prepare the statement of stockholders' equity for Company A for the year ended December 31, Year 1. (Amounts to be deducted should be indicated by a minus sign.) Company A Statement of Stockholders' Equity For the Year Ended December 31, Year 1 Additional Common Stock Paid-in Capital Treasury Stock Retained Earnings $ 2,000,000 Total Stockholders' Equity $ 6,600,000 $ 100,000 $ 4,500,000 $ 0 Balance, January 1 Issue common stock Purchase treasury stock Declare dividends Resell treasury stock Net income Balance, December 31Step by Step Solution
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