Question

On January 1, 2022, Sage Hill Inc. had these stockholders’ equity balances.

Common Stock, $1 par (2,500,000 shares authorized, 660,000 shares issued and outstanding)

$660,000

Paid-in Capital in Excess of Par Value

1,440,000

Retained Earnings

681,000

Accumulated Other Comprehensive Income

47,000

During 2022, the following transactions and events occurred.

1.

Issued 46,500 shares of $1 par value common stock for $2 per share.

2.

Issued 60,000 shares of common stock for cash at $6 per share.

3.

Purchased 22,200 shares of common stock for the treasury at $3.90 per share.

4.

Declared and paid a cash dividend of $165,000.

5.

Earned net income of $366,000.

6.

Had other comprehensive income of $18,000.

Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.

SAGE HILL INC Partial Balance Sheet Study

Answer 1

SAGE HILL Partial Balance INC sheet $ 766500 Paid in capital Common stock. Additional paidin Capital Paid in capital in excess of Par value - common stock Total capital Retained Earnings $1766500 2553000 882000 $ 1671000 less & 85800 Treasury stock ( 22000X 39) 1585200 65000 other comprehensive income Total stockholder's equity. 1650200