Question

The shareholders' equity section of the balance sheet of The Claremont Company appeared as follows at the end of the first year of operations: Common stock, $0.16 par value $960,000 Additional paid-in-capital 143,040,000 Retained earnings 51,200,000 Treasury stock (12,000,000) Shareholders' equity $183,200,000 During the second year of operations, the following transactions occurred: Generated net income of $9.6 million. Paid a cash dividend of $2.4 million. Purchased 100,000 shares of common stock at $15.2 per share. Executed a 1-for-2 reverse stock split. Prepare the shareholders' equity section of the balance sheet of Claremont Company at the end of the second year of operations. Use a negative sign with treasury stock answer. The Claremont Company Stockholders' Equity December 31, Year 2 Common stock, par value $Answer 960,000 Additional paid-in-capital Answer Retained earnings Answer 0 Treasury stock Answer 0 Total shareholders' equity $Answer 0

Answer 1

Common Stock $0.32 par value	$              960,000.00
Additional Paid in capital	$      143,040,000.00
Retained Earnings	$        58,400,000.00	=51200000+9600000-2400000
Treasury Stock	$      (13,520,000.00)	=-(15.2*100000+12000000)
Total Shareholders Equity	$      188,880,000.00