Question
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $6 par value, 300,000 shares
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows:
Common stock, $6 par value, 300,000 shares authorized, 60,000 shares | 360,000 | |
issued, 6,000 shares in treasury | ||
Additional paid-in capital | ||
In excess of par value | 600,000 | |
From treasury stock | 37,500 | 637,500 |
Retained earnings | 435,000 | |
1,432,500 | ||
Less: Treasury stock (6,000 shares) at cost | 172,500 | |
Total Stockholders Equity | 1,260,000 |
The following transactions affecting stockholders equity occurred during the year:
Jan. | 8 | Issued 15,000 shares of previously unissued common stock for $26 cash per share. |
Mar. | 12 | Sold all of the treasury shares for $35 cash per share. |
June | 30 | Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $31 per share. |
July | 10 | Issued the stock dividend declared on June 30. |
Oct. | 7 | Acquired 2,500 shares of common stock as treasury stock at $33 cash per share. |
Dec. | 18 | Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. |
Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders equity. Net income for the year is $426,250.
- Journal Entries
- Statement of Stockholders' Equity
Note: Use negative signs with your answers when appropriate (reduction to retained earnings, acquired treasury stock and treasury stock balances).
Night Corporation Statement of Stockholders' Equity For Year Ended December 31 | |||||||
---|---|---|---|---|---|---|---|
Common Stock | Paid-in-Capital in Excess of Par | Paid-in-Capital from Treasury Stock | Retained Earnings | Treasury Stock | Total | ||
Balance, January 1 | Answer | Answer | Answer | Answer | Answer | Answer | |
Answer | Common shares issued | Answer | Answer | Answer | Answer | Answer | Answer |
Answer | Treasury shares sold | Answer | Answer | Answer | Answer | Answer | Answer |
Stock Dividends Issued | Answer | Answer | Answer | Answer | Answer | Answer | |
Answer | Treasury shares acquired | Answer | Answer | Answer | Answer | Answer | Answer |
Cash Dividends Declared | Answer | Answer | Answer | Answer | Answer | Answer | |
Net Income | Answer | Answer | Answer | Answer | Answer | Answer | |
Balance, December 31 | Answer | Answer | Answer | Answer | Answer | Answer |
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