Court Casuals has the following beginning balances in its stockholders\' equity
ID: 2404876 • Letter: C
Question
Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Common Stock, $100,000; Additional Paid-in Capital, $3,800,000; and Retained Earnings, $2,000,000. Net income for the year ended December 31, 2018, is $900,000. Court Casuals has the following transactions affecting stockholders' equity in 2018: May 18 Issues 29,000 additional shares of $1 par value common stock for $40 per share. May 31 Repurchases 5,000 shares of treasury stock for $40 per share. July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury stock. July 31 Pays the cash dividend declared on July 1. August 10 Reissues 1,500 shares of treasury stock purchased on May 31 for $54 per share. Taking into consideration all the entries described above, prepare the statement of stockholders' equity for the year ended December 31, 2018, using the format provided. (Amounts to be deducted should be indicated with a minus sign. Increases in treasury stock should be entered with a minus sign since it is a contra account. )
Court Casuals has the following beginning balances in its stockholders' equity accounts on Casuals has the following transactions affecting stockholders' equity in 2018 May 31 Repurchases 5,000 shares of treasury stock for $40 per share Dividends are not paid on treasury stock. 6 July 31 Pays the cash dividend declared on July 1 Taking into consideration all the entries described above, prepare the statement of stockholders' 9 entered with a minus sign since it is a contra account.) Statement of Stockholders' Equity For the Year Ended December 31, 2018 Treasury Stockholders 9 Balance, January 1Explanation / Answer
Statement of stockholder's equity :
Common Stock Additional paid in capital Retained earnings Treasury stock Total stockholder's equity Balance, January 1 100000 3800000 2000000 5900000 Issue common stock 29000 1131000 1160000 Repurchase of treasury stock -200000 -200000 Cash dividends -248000 -248000 Sale of treasury stock 21000 60000 81000 Net income 900000 900000 Balance, December 31 129000 4952000 2652000 -140000 7593000