Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 Issue 50,000 additional shares of $i par value common stock for $47 per share. May 10 Purchases 4,500 shares of treasury stock for $50 per share. June 1 Declares a cash dividend of $1.25 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 2,250 shares of treasury stock purchased on May 10 for $55 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, $4,000,000; and Retained Earnings. $1,500,000. Net income for the yearyended December 31, Year 1, is $550,000 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 $4,000,000; and Retained Earnings, $1,500,000. Net Income for the year ended December 31, Year 1, is $550,000 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 Total Common Stock Additional Retained Pald-in Capital Earnings Treasury Stock Stockholders' Equity $ 100,000 $ 4,000,000 $ 1,500,000 $ 0 $ 5,600,000 Balance, January 1 Issue common stock Purchase treasury stock Declare dividends Resell treasury stock Net Income Balance, December 31

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

Step: 3

blur-text-image

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

Contemporary Debates On Politics And Public Administration In The Postmodern Era

Authors: Ă–mer Ugur, Kadir Caner Dogan

1st Edition

3631796331, 9783631796337

More Books

Students also viewed these Accounting questions