Question

The following information was extracted from the records of TAC Corporation at the end of the fiscal year after all adjusting entries were completed: Common stock ($20 par value; 100,000 shares authorized, 34,000 shares issued, 32,000 shares outstanding) Additional paid-in capital Dividends declared and paid during the year Retained earnings at the beginning of the year Treasury stock at cost (2,000 shares) $680,000 163,000 16,000 75,000 (25,000) Net income for the year was $30,000. The stock price is currently $22.29 per share. Required 1. Prepare the stockholders' equity section of the balance sheet at the end of the fiscal year. (Amounts to be deducted should be indicated by a minus sign.) TAC CORPORATION Balance Sheet (Partial) At End of This Fiscal Year Stockholders' equity: Contributed Capital Common stock Additional paid-in capital $ 680,000 163,000 843,000 Total contributed capital Retained earnings 843,000 Total contributed capital and retained earnings Treasury stock Total stockholders' equity $ 843,000

Answer 1

TAC CORPORATION
Balance Sheet (Partial)
At End of This Fiscal Year
Shareholders’ Equity
Contributed Capital:
Common stock	$680,000
Additional paid-in capital	$163,000
Total Contributed Capital   [$680,000 + $163,000]		$843,000
Retained Earnings                    [Beginning balance + Net Income for the year – Dividend declared = $75,000 + $30,000 - $16,000]		$89,000
Total Contributed Capital and Retained Earnings		$932,000
Treasury Stock		($25,000)
Total Stockholders' Equity           [$932,000 - $25,000]		$907,000