Accounting and Financial Reporting II Directions - Part Two A company had the fo
ID: 2556311 • Letter: A
Question
Accounting and Financial Reporting II
Directions - Part Two
A company had the following balances in its stockholders' equity accounts at December 31, 2XX4:
Common stock, $10 par, 50,000 shares authorized, 20,000 shares issued $200,000
Contributed capital in excess of par value, common 250,000
Retained earnings 500,000
Treasury stock, 1,000 shares (20,000)
Total stockholders' equity $930,000
The following occurred during 2XX5:
February 3 - Sold and issued 3,000 shares of common stock for a sell price of $72 per share.
May 10 - Declared a $0.50 per share cash dividend on common stock.
October 12 - Sold 500 shares of treasury stock for $20 per share.
December 31 - Net income for the year is $75,000.
Required:
For EACH stockholders' equity account listed above, determine the account balance at December 31, 2XX5. Use the matrix format listed below. Be sure to show your supporting calculations and label them to indicate which numbers in the matrix they are supporting.
Contributed
Common
capital in
Retained
Treasury
Stock ($)
excess of par
earnings
stock
Total
Beginning balance
Net income
Issue common stock
Reissue treasury stock
Cash dividends
Ending balance
Contributed
Common
capital in
Retained
Treasury
Stock ($)
excess of par
earnings
stock
Total
Beginning balance
Net income
Issue common stock
Reissue treasury stock
Cash dividends
Ending balance
Explanation / Answer
Common stock Contributed capital in excess of par Retained earnings Treasury stock Total Beginning balance 200000 250000 500000 -20000 930000 Net income 75000 75000 Issue common stock 30000 186000 216000 (3000 x $10) (3000 x $62) Reissue treasury stock 10000 10000 (500 x $20) Cash dividends -11500 -11500 [$0.50 x (20000+3000)] Ending balance 230000 436000 563500 -10000 1219500