Question

Green Line Corporation was organized in January 2019. During 2019, Green Line engaged in the following stockholders' equity activities:

1. Secured approval for a corporate charter that authorizes Green Line to sell 1,500,000, $2 par common shares and 200,000, $25 par preferred shares.
2. Sold 120,000 of the common shares for $9 per share.
3. Sold 65,000 of the preferred shares for $32 per share.
4. Repurchased 15,000 shares of the common stock at a cost of $11 per share.
5. Earned net income of $460,000.
6. Paid dividends of $52,000.

Required:

Prepare the stockholders' equity portion of Green Line's balance sheet as of December 31, 2019.

Green Line Corporation
Balance Sheet (Partial)
December 31, 2019
Stockholders' equity:
Preferred stock, $25 par, 200,000 shares authorized, 65,000 shares issued and outstanding		$
Common stock, $2 par, 1,500,000 shares authorized, 120,000 shares issued and 105,000 outstanding
Additional paid-in capital:
Preferred stock	$
Common stock
Total capital stock		$
Retained earnings
Less:
Treasury stock (15,000 shares, at cost)
Total stockholders' equity

Answer 1

Prepare the stockholders' equity portion of Green Line's balance sheet as of December 31, 2019.

Green Line Corporation
Balance Sheet (Partial)
December 31, 2019
Stockholders' equity:
Preferred stock, $25 par, 200,000 shares authorized, 65,000 shares issued and outstanding	1625000
Common stock, $2 par, 1,500,000 shares authorized, 120,000 shares issued and 105,000 outstanding	240000	1865000
Additional paid-in capital:
Preferred stock	455000
Common stock	840000	1295000
Total capital stock		$3160000
Retained earnings		408000
Less:		3568000
Treasury stock (15,000 shares, at cost)		-165000
Total stockholders' equity		3403000