Question
Stockholders' Equity. Given the following information for Company G at 1/1/16: Retained earnings at 1/1/16 were $800,000. Common stock at 1/1/16 was $ 300,000. Additional
Stockholders' Equity. Given the following information for Company G at 1/1/16:
Retained earnings at 1/1/16 were $800,000.
Common stock at 1/1/16 was $ 300,000.
Additional Paid-in Capital at 1/1/16 was $900,000.
The description of the common stock at 1/1/16 was: $10 par value, 100,000 shares authorized, 30,000 shares issued and outstanding.
During 2016 (its second year), Company G had the following activity:
1. The income statement reflected net income of $200,000 for the year ended 12/31/16.
2. Cash dividends of $1 per share were declared and paid to the common shareholders in February of 2016.
3. On June 1, 2016, Company G declared a 100% stock dividend.
4. On July, 1, 2016, Company G distributed the 100% stock dividend.
5. On September 1 of 2016, Company G repurchased 2,000 shares of its own stock at $23 per share. Company G uses the cost method to account for treasury stock transactions.
6. On December 1 of 2016, Company G reissued 600 shares of the treasury stock at $21 per share.
On the answer sheet, complete the Statement of Stockholders Equity for Items 1 6 above.
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