Question

The following is a summary of all relevant transactions of Sage Corporation since it was organized in 2020. In 2020, 15,300 shares were authorized and 6,900 shares of common stock ($60 par value) were issued at a price of $67. In 2021, 900 shares were issued as a stock dividend when the stock was selling for $70.290 shares of common stock were bought in 2022 at a cost of $74 per share. These 290 shares are still in the company treasury. In 2021,9,500 preferred shares were authorized and the company issued 4,700 of them ($100 par value) at $123. Some of the preferred stock was reacquired by the company and later reissued for $4,420 more than it cost the company. The corporation has earned a total of $573,900 in net income after income taxes and paid out a total of $281,500 in cash dividends since incorporation Prepare the stockholders' equity section of the balance sheet in proper form for Sage Corporation as of December 31, 2022. Account for treasury stock using the cost method (Enter account name only. Do not provide descriptive information.)

Answer 1

	Common shares	Preffered shares
Beginning	6,900	4,700
stock dividends	900
Total Shares issued	7,800	4,700

Saga Corporation
Stockholders' Equity
December 31, 2022
Capital Stock:
Preferred stock: $100 par value, 9500 shares authorised, 4700 shares issued and outstanding (4700*100)		$            470,000
Common stock: $60 par value, 15300 shares authorised, 7800 shares issued (7800*60)		$            468,000
Total capital stock		$            938,000
Additional paid-in-capital:
In excess of par- prefered (4700*(123-100))	$        108,100
In excess of par - common stock (Notes 1)	$          57,300
From treasury stock (Preferred)	$            4,420
		$            169,820
Total paid in capital		$        1,107,820
Retained earnings (Notes 2)		$            229,400
Total paid-in-capital and retained earnings		$        1,337,220
Less: Cost of treasury stock (290*74)		$            (21,460)
Total stockholders equity		$        1,315,760

Notes 1
From beginning (6900*(67-60))	$        48,300
From stock dividend (900*(70-60))	$          9,000
Additional paid-in-capital for common stock	$        57,300
Notes 2
Net income	$      573,900
Less: cash dividends	$   (281,500)
Less: stock dividends (900*70)	$      (63,000)
Retained earnings	$      229,400