Question
Sage Company reported the following amounts in the stockholders equity section of its December 31, 2016, balance sheet. Preferred stock, 10%, $100 par (10,000 shares
Sage Company reported the following amounts in the stockholders equity section of its December 31, 2016, balance sheet.
Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800 shares issued) | $180,000 | |
Common stock, $5 par (103,500 shares authorized, 20,700 shares issued) | 103,500 | |
Additional paid-in capital | 114,000 | |
Retained earnings | 423,000 | |
Total | $820,500 |
During 2017, Sage took part in the following transactions concerning stockholders equity.
1. | Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016. | |
2. | Purchased 1,500 shares of its own outstanding common stock for $43 per share. Sage uses the cost method. | |
3. | Reissued 600 treasury shares for land valued at $27,100. | |
4. | Issued 550 shares of preferred stock at $105 per share. | |
5. | Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $41 per share. | |
6. | Issued the stock dividend. | |
7. | Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018. |
Please prepare the December 31, 2017, stockholders equity section. Assume 2017 net income was $336,000.
SAGE COMPANY Stockholders Equity For the Year Ended December 31, 2017
Capital Stock
Preferred Stock $235,000
Common Stock $?
Total Capital Stock $?
Additional Paid-in Capital $?
Total Paid-in Capital $?
Retained Earnings $?
Total Paid-in Capital Retained Earnings $?
Less: Treasury Stock $38,700
Total Stockholder's Equity $?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started