Question
The stockholders' equity of Verrecchia Company at December 31, 2008, follows: Common stock, $5 par value, 350,000 shares authorized; 170,000 shares issued and outstanding $850,000
The stockholders' equity of Verrecchia Company at December 31, 2008, follows:
Common stock, $5 par value, 350,000 shares authorized; 170,000 shares issued and outstanding | $850,000 |
Paid-in capital in excess of par value | 600,000 |
Retained earnings | 346,000 |
During 2009, the following transactions occurred:
Jan. 5 | Issued 10,000 shares of common stock for $11 cash per share. | |
Jan. 18 | Purchased 4,000 shares of common stock for the treasury at $15 cash per share. | |
Mar. 12 | Sold one-fourth of the treasury shares acquired January 18 for $19 cash per share. | |
July 17 | Sold 500 shares of the remaining treasury stock for $14 cash per share. | |
Oct. 1 | Issued 5,000 shares of 8%, $24 par value preferred stock for $40 cash per share. This is the first issuance of preferred shares from the 50,000 authorized shares. |
Prepare the December 31, 2009, stockholders' equity section of the balance sheet assuming that the company reports net income of $72,500 for the year.
Stockholders' Equity | |||||
Paid-in capital: 8% Preferred stock, $24 par value, 50,000 shares authorized, 5,000 shares issued and outstanding:
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Common stock, $5 par value, 350,000 shares authorized; 180,000 shares issued:
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Additional paid-in capital Paid-in capital in excess of par value-preferred stock:
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Paid-in capital in excess of par value-common stock: |
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Paid-in capital from treasury stock: |
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Total paid-in capital:
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Retained earnings: | |||||
Less: Treasury stock (2,500 shares) at cost | : | ||||
Total Stockholders' Equity: |
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