E11-9 Recording and Reporting Stockholders' Equity Transactions, Including Closing Entry [LO 11-2, LO 11-3]

Skip to question

[The following information applies to the questions displayed below.]

The annual report for Malibu Beachwear reported the following transactions affecting stockholders equity:

1. Purchased $351,300 of common stock now held in treasury.
2. Declared cash dividends in the amount of $260,650.
3. Paid the dividends in (b).
4. Issued 113,000 new shares of $0.10 par value common shares for $2 per share.
5. Closed the Dividends account.

E11-9 Part 3

3. Prepare a statement of stockholders equity, assuming the following opening balances.

	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock
Beginning	$ 13,150	$ 196,500	151,300	0
Stock Issuances
Net Income			283000
Dividends: Common