The balance sheet of Avery Hardware, Inc., at December 31, 2015, reported 700,000 shares of $3 par

Question:

The balance sheet of Avery Hardware, Inc., at December 31, 2015, reported 700,000 shares of $3 par common stock authorized with 95,000 shares issued and outstanding. Paid-in Capital in Excess of Par-Common had a balance of $320,000. Retained Earnings had a balance of $101,000. During 2016, the company completed the following selected transactions:

Feb 15 Purchased 11,000 shares of treasury stock at $4 per share.

Mar 8 Sold 7,000 shares of treasury stock for $6 per share.

Sep 28 Declared and distributed a 10% stock dividend on the

91,000 shares of outstanding common stock. The market value of Avery Hardwares common stock was $13 per share.

Requirements

1. Record the transactions in the journal. Explanations are not required.

2. Prepare the stockholders' equity section of the balance sheet at December 31, 2016, assuming the company earned $111,000 of net income during the year.

Common Stock
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