PA11-1 Analyzing Accounting Equation Effects, Recording Journal Entries, and Preparing a Partial Balance Sheet Involving Stock Issuance and Purchase Transactions [LO 11-2]

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Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $400,000 of net income, declared no dividends, and the following selected transactions occurred in the order given:

1. Issued 100,000 shares of the common stock at $55 cash per share.
2. Reacquired 25,000 shares at $50 cash per share.
3. Reissued 10,000 shares from treasury for $51 per share.
4. Reissued 10,000 shares from treasury for $49 per share.

PA11-1 Part 3

3. Prepare the stockholders equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.)

GLOBAL MARINE
Balance Sheet (Partial)
At December 31
Stockholders Equity
Contributed Capital:
Common Stock	$500,000
Additional Paid-In Capital, Common Stock	5,000,000
Total Contributed Capital	5,500,000
Retained Earnings	400,000
Total	5,900,000
Less: Treasury Stock, at cost	(250,000)
Total Stockholders Equity	$5,650,000