Question
The balance sheet of Heitman Management Consulting, Inc. at December 31, 2015, reported the following stockholders' equity: During 2016, Heitman completed the following selected transactions:
The balance sheet of Heitman Management Consulting, Inc. at December 31, 2015, reported the following stockholders' equity:
During 2016, Heitman completed the following selected transactions:
Stockholders' Equity | ||
Paid-In Capital: |
| |
| Common Stock$12 Par Value; 250,000 shares |
|
| authorized, 30,000 shares issued and outstanding | $360,000 |
| Paid-In Capital in Excess of ParCommon | 380,000 |
| Total Paid-In Capital | 740,000 |
Retained Earnings | 159,000 | |
Total Stockholders' Equity | $899,000 |
Feb. | 6 | Declared a 5% stock dividend on common stock. The market value of Heitman's stock was $21 per share. | |
15 | Distributed the stock dividend. | ||
Jul. | 29 | Purchased 2,000 shares of treasury stock at $21per share. | |
Nov. | 27 | Declared a $0.20 per share cash dividend on the common stock outstanding.
|
Requirements
1. | Record the transactions in the general journal. |
2. | Prepare a retained earnings statement for the year ended December 31, 2016. Assume Heitman's net income for the year was $85,000. |
3. | Prepare the stockholders' equity section of the balance sheet at December 31, 2016.
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