Question

At the end of the prior year annual reporting period, Barnard Corporation's balance sheet showed the following: BARNARD CORPORATION Balance Sheet At December 31, Prior Year Stockholders' equity Contributed capital Common stock (par $15; 5,900 shares) Paid-in capital Total contributed capital Retained earnings Total stockholders' equity $ 88,500 17,000 105,500 42,000 $147,500 During the current year, the following selected transactions (summarized) were completed: a. Sold and issued 1,500 shares of common stock at $29 cash per share (at year-end). b. Determined net income, $44,000. c. Declared and paid a cash dividend of $5 per share on the beginning shares outstanding. Required: Prepare a statement of stockholders' equity for the year ended December 31, current year. BARNARD CORPORATION Statement of Stockholders' Equity Common Stock Shares Amount Paid-in Capital Retained Earnings Total Stockholders Equity Balances as of December 31, prior year Balances as of December 31, current year < Prev 3 of 5 Next >

Answer 1

BARNAD CORPORATION
Statement of Stockholders Equity
	Common Stock		Paid in Capital	Retained Earnings	Total Stockholders Equity
	Shares	Amount
Balances as of December 31, Prior year	5900	$                          88,500	$                          17,000	$                           42,000	$                              147,500
Sold and issued 1,500 shares	1500	1,500*$15 = $22,500	1,500*$14 = $21,000		$                                43,500
Net income				$                           44,000	$                                44,000
Declare and paid cash dividends				7,400*$5 = ($37,000)	$                              (37,000)
Balances as of December 31, Current year	7400	$                        111,000	$                          38,000	$                           49,000	$                              198,000

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