Common stock-$10 par value, 110,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 400,000 60,000 330,000 $ 790,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. 2 Purchased 4,000 shares of its own stock at $23 cash per share. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. 28 Paid the dividend declared on January 5. 6 Sold 1,500 of its treasury shares at $27 cash per share. 22 Sold 2,500 of its treasury shares at $20 cash per share. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. 28 Paid the dividend declared on September 5. 31 Closed the $391,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Oct. Dec. No Date Account Title Debit Credit 1 Jan 02 Treasury stock, Common 92,000 Cash 92,000 ECO BUILD CORPORATION Statement of Retained Earnings For Year Ended December 31 Beginning retained earnings $ 330,000 Add: Net income 330,000 Less: Cash dividends declared Less: Treasury stock reissuances 152,000 1,500 $ 176,500 ECO BUILD CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Common stock - $10 par value Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total stockholders' equity $ 400,000 60,000 460,000 330,000 X $ 790,000 $ 92,000 72,000 40,500 Impact on equity Total Stockholders' Equity - January 1 Jan. 2) Purchased 4,000 shares of its own Stockholders' equity stock at $23 cash per share. decreased Jan. 5) Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 No change in total equity stockholders of record. Feb. 28) Paid the dividend declared on Stockholders' equity January 5. decreased Jul. 6) Sold 1,500 of its treasury shares at $27 Stockholders' equity cash per share. increased Aug. 22) Sold 2,500 of its treasury shares at Stockholders' equity $20 cash per share. increased Sep. 5) Directors declared a $2 per share cash dividend payable on October 28 to the No change in total equity September 25 stockholders of record. Oct. 28) Paid the dividend declared on Stockholders' equity September 5. decreased Dec. 31) Closed the $391,000 credit balance Stockholders' equity (from net income) in the Income Summary increased account to Retained Earnings. Total Stockholders' Equity - as calculated on December 31 Total Stockholder's Equity as reported on Stockholder's Equity tab Unreconciled difference: 50,000 80,000 338,500 X $ 673,000 $ 790,000 $ (117,000)