Question

Martinez Corporation has been authorized to issue 20,500 shares of $100 par value, 10%, preferred stock and 1,084,200 shares of no-par common stock. The corporation assigned a $2.60 stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders' equity. Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Treasury Stock (1,160 common shares) Paid-in Capital from Treasury Stock Retained Earnings Accumulated Other Comprehensive Income $125,000 15,000 1,084,200 1,834,800 13.920 1,740 81,500 62,000 The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In November, 1.740 shares of common stock were purchased for the treasury at a per share cost of $12. In December, 580 shares of treasury stock were sold for $15 per share. No dividends were declared in 2020.

Answer 1

Amount Martinez Corp Stockholder's equity Particulars Paid in capital Common stock Preferred equity Addition paid in capital Common stock Preferred equity Total capital Retained earnings 1084200 125000 1209200 1834800 15000 1849800 3059000 81500 3140500 13920 Less: Treasury stock (-) Additional paid in capital -1740 12180 Other comprehensive income Stockholder's equity 3128320 62000 3190320