A computer virus destroyed important financial information pertaining to Denton Company's stockholders' equity section. Your expertise is needed to compute the missing account balances. The only information you can recover from the computer's back-up system is as follows:

a. During $2000,8,000$ shares of common stock with a par value of $\$ 10$ were issued when the market price per share was $\$ 22$.

b. Cash dividends of $\$ 30,000$ were paid to preferred shareholders.

c. Denton Company acquired 4,000 shares of common stock at $\$ 15$ to hold as treasury stock.

d. Denton Company reissued 3,000 shares of treasury stock for $\$ 18$.

1. Calculate the account balances for the following accounts:

a. Common stock

b. Paid-in capital in excess of par, common stock

c. Paid-in capital, treasury stock

d. Stockholders' equity 2. How much net income did Denton Company report for 2000 ?

Transcribed Image Text:

Preferred stock. Common stock. Paid-in capital in excess of par, preferred stock. Paid-in capital in excess of par, December 31, 1999 December 31, 2000. $ 2,000 6,000 750 $ 2,000 ? 750 common stock 1,750 ? Paid-in capital, treasury stock. 0 ? Retained earnings 4,500 5,250 Treasury stock. (15,000) Total stockholders' equity 15,000 ?