Question

Corporation’s first year of business, the following transactions affected its equity accounts.

Issued 7,200 shares of $2 par value common stock for $50. It authorized 20,000 shares.
Issued 1,800 shares of 12%, $10 par value preferred stock for $55. It authorized 3,000 shares.
Reacquired 360 shares of common stock for $62 each.
Retained earnings is impacted by reported net income of $82,000 and cash dividends of $31,000.

Prepare the stockholders’ equity section of Corporation's balance sheet as of Dec 31.

Answer 1

Stockholder's equity

Paid in Capital
Common Stock	14400
Paid in Capital in excess of par value-Common Stock	345600
Preferred stock	18000
Paid in Capital in excess of par value-Preferred stock	81000
Total Paid in Capital	459000
Retained earnings	51000
Total	510000
Less: Treasury stock	-22320
Total stockholder's equity	487680