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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

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