TR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common. As of the beginning of 20XD, 5,000 shares of preferred stock and 1,000,000 shares of common stock have been issued.

Analyze the following transactions as it relates to the Stockholders Equity accounts (PS, CS, APIC, RE, TS) and then complete the Statement of Stockholders Equity before answering the questions on the next page.

Affect on Stockholders Equity Accounts

1-Mar Issue 1,000 additional shares of preferred stock for $115 per share 1-Apr Issue 50,000 additional shares of common stock for $20.00 per share

1-Jun Declare a cash dividend on both common and preferred stock of $0.30 per share to all stockholders of record on June 15.

30-Jun Pay the cash dividend declared on June 1.

1-Aug Repurchase 5,000 shares of common treasury stock for $16 per share

1-Oct Sell 3,000 shares of treasury stock purchased on August 1 for $19 per share

31-Dec Net income for the year was $325,000.

Chapter 10 Page 10-2 6. $____________ When the shares were issued on March 1, how much did additional paid in capital increase? 7. $__________ On August 1st when the shares were repurchased, how much did stockholders equity decrease? 8. $____________ On August 1st when the shares were repurchased, how much did net income decrease? 9. $____________On October 1st when the 3,000 shares were resold, how much did additional paid in capital change (if decrease put - in front of the number)? 10. $______________On June 1st when the dividend was declared, how much did retained earning decrease? 11. $______________Compute ending retained earnings on December 31st. 12. $______________Compute ending stockholders equity on December 31st.