Prepare a statement of stockholders\' equity for the year ended December 31, 201
ID: 2466751 • Letter: P
Question
Prepare a statement of stockholders' equity for the year ended December 31, 2015, assuming these transactions occurred in sequence in 2015: Issued 5,000 shares of $100 par value, 9 percent cumulative preferred stock at par after obtaining authorization from the state. Issued 20,000 shares of common stock in connection with the conversion of bonds having a carrying value of $300,000. Declared and issued a 2 percent common stock dividend. The market value on the date of declaration was $14 per share. Purchased 5,000 shares of common stock for the treasury at a cost of $16 per share. Earned net income of $230,000. Declared and paid the full-year's dividend on preferred stock and a dividend of $0.40 per share on common stock outstanding at the end of the year. If an amount is zero, enter "0".
Manco Corporation Statement of Stockholders' Equity For the Year Ended December 31, 2015 9% Cumulative Preferred Stock $2 Par Value Stock Common Additional Paid-in Capital Retained Earnings Treasury Stock Total $ 400000 $600000 $2100000 $ 3100000 500000 500000 40000 260000 0 0 300000 Correct 8800 52800 0 0 80000 80000 0 230000 0 230000 0 45000 0 45000 0 15,750 0 260000 500000 $ 448800 $912800 $15,750 $ 80000 $ 4255000Explanation / Answer
The last no of 15750 is incorrect, The correct calculation gives a balance of retained earnings of 16800. due to which the system shows an error.
Likewise the total will also undergo change and the answer should change from 260000 to 261050