Question

Saved Help Save & Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock $100,000 Additional Paid-in Capital, $4,100,000; and Retained Earnings, $4,000,000. Net Income for the year ended December 31, 2021, is $1,000,000. Court Casuals has the following transactions affecting stockholders' equity in 2021 May 18 Issues 22,000 additional shares of $1 par value common stock for $60 per share. May 31 Purchases 3,000 shares of treasury stock for $35 per share. July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hinti Dividends are not paid on treasury stock. July 31 Pays the cash dividend declared on July 1. August 10 Resells 2,750 shares of treasury stock purchased on May 31 for $55 per share. Taking into consideration all the entries described above, prepare the statement of stockholders' equity for the year ended December 31, 2021, using the format provided. (Amounts to be deducted should be indicated with a minus sign.) COURT CASUALS Statement of Stockholders' Equity For the Year Ended December 31, 2021 Additional Common Retained Paldun Stock Earnings Capital $ 100,000 $4,100,000 $ 4,000,000 22,000 Treasury Stock Total Stockholders Equity $ 8.200.000 Balance, January 1 Issue common stock Purchase treasury stock Cash dividends Resell treasury stock Net income Balance, December 31 $ 122,000 $4,100,000 $ 4,000,000 $ 0 $ 8,200,000

Answer 1

COURT CASUALS Statement of Stockholder's Equity For the year ended December 31,2021 Additional Retained Paid in Stock Earnings Capital $ 100,000 $4,100,000 $ 4,000,000 $ 22,000 $1,298,000 Common Balance, January 1 Issue Common Stock Purchase Treasury Stock Cash Dividends Resell Treasury Stock Net Income Balance, December 31 Total Treasury Stockholder's Stock equity $ 8,200,000 $ 1,320,000 $ (105,000) $ (105,000) $ (238,000) $ 96,250 $ 151,250 $ 1,000,000 $ (8,750)| $ 10,328,250 $ (238,000) $ 55,000 $ $ 1,000,000 4,762,000 $ 122,000 $5,453,000

Working Notes: from Issue of additional Shares Common Stock 22000 *$ 1 Additional paid in Capital 22000* ( $60-$ 1) $ $ 22,000 1,298,000 Total Cost of traeasury Stock purchased Purchase of Treasury Stock 3000 * $35 $ 105,000 Dividends Dividend = ( 100000 +22000 - 3000) *$ 2 $ 238,000 From Resale of Treasury Stock Total Amount collected from Treasury Stock reissued 2750*$55 Less: Cost of treasury stock re issued Additional paid in capial, treasury Stock $ $ $ 151,250 96,250) 55,000