Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $110,000; Additional Paid-in Capital, $4,000,000; and

image text in transcribed

Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $110,000; Additional Paid-in Capital, $4,000,000; and Retained Earnings, $4,000,000. Net income for the year ended December 31, 2021, is $900,000. Court Casuals has the following transactions affecting stockholders' equity in 2021: May 18 Issues 27,000 additional shares of $1 par value common stock for $50 per share. May 31 Purchases 4,500 shares of treasury stock for $40 per share. July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury stock. July 31 Pays the cash dividend declared on July 1. August 10 Resells 2,250 shares of treasury stock purchased on May 31 for $57 per share. Taking into consideration all the entries described above, prepare the statement of stockholders' equity for the year ended December 31, 2021, using the format provided. (Amounts to be deducted should be indicated with a minus sign.) COURT CASUALS Statement of Stockholders' Equity For the Year Ended December 31, 2021 Common Stock Additional Paid-in Retained Earnings Treasury Stock Capital Balance, January 11 Issue common stock Purchase treasury stock Cash dividends Resell treasury stock Net income Balance, December 31- $ 110,000 $4,000,000 $4,000,000 27,000 $ 137,000 Total Stockholders' Equity $ 8,110,000

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

Managerial Accounting for Managers

Authors: Eric Noreen, Peter Brewer, Ray Garrison

2nd edition

978-0077403485, 77403487, 73527130, 978-0073527130

More Books

Students also viewed these Accounting questions

Question

=+c) What are the factors?

Answered: 1 week ago

Question

Complete a payroll register.

Answered: 1 week ago