Question
Stockholders Equity Section of Gupta Company December 31, 2011 8% preferred stock, $25 par value, 50,000 shares authorized; 6800 shares issued and outstanding$170,000 Common Stock,
Stockholders Equity Section of Gupta Company December 31, 2011
8% preferred stock, $25 par value, 50,000 shares authorized;
6800 shares issued and
outstanding$170,000
Common Stock, $10 par value, 200,000 shares authorized;
50,000 shares issued and
outstanding..500,000
Paid in capital in excess of par value- preferred stock
68,000
Paid in capital in excess of par value-common stock
200,000
Retained
Earnings
.270,000
During 2012, the following transactions occurred:
January 10, Issued 28,000 shares of common stock for $17 per share
January 23, Repurchased 8000 shares of common stock at $19 per share
March 14, Sold one half of the treasury shares acquired January 23 for $21 cash per share
July 15, Issued 3200 shares of preferred stock for $128,000 cash
November 15, Sold 1000 of the treasury shares acquired January 23 for $24 cash per share.
Required:
1. Use the financial statement effects template to indicate the effects from each of these
transactions.
2. Prepare the December 31, 2012, stockholders equity section of the balance sheet
assuming the company reports 2012 net income of $59,000.
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