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Stockholders Equity: Information and Entries from Comparative Data Comparative stockholders equity sections from two successive years of balance sheets from Smiley, Inc., are as follows:
Stockholders Equity: Information and Entries from Comparative Data Comparative stockholders equity sections from two successive years of balance sheets from Smiley, Inc., are as follows:
Dec. 31, 2012 | Dec. 31, 2011 | |
---|---|---|
Paid-in Capital | ||
8 Percent preferred stock, $50 par value, authorized 20,000 shares; | ||
issued and outstanding, 2011: 8,000 shares; 2012: 12,000 shares | $600,000 | $400,000 |
Common stock, no-par value, $20 stated value, authorized 80,000 | ||
shares; issued, 2011: 32,000 shares; 2012: 40,000 shares | 800,000 | 640,000 |
Additional Paid-in Capital | ||
In excess of par valuePreferred stock | 224,000 | 144,000 |
In excess of stated valueCommon stock | 232,000 | 160,000 |
From treasury stock | 21,000 | |
Retained earnings | 300,000 | 229,000 |
$1,573,000 | ||
Less: Treasury stock (7,000 shares common) at cost | 0 | 196,000 |
Total Stockholders Equity | $2,177,000 | $1,377,000 |
No dividends were declared or paid during 2012. Required Prepare the journal entries for the transactions affecting stockholders equity that occurred during 2012. Do not prepare the journal entry for closing net income to retained earnings. Assume that any share transactions were for cash.
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