Presented below is information related to Hale Corporation at December 31, 2017:
ID: 2559460 • Letter: P
Question
Presented below is information related to Hale Corporation at December 31, 2017:
Common Stock, $1 par $3,500,000
Paid-in Capital in Excess of Par—Common Stock 550,000
Preferred 8 1/2% Stock, $50 par 2,000,000
Paid-in Capital in Excess of Par—Preferred Stock 400,000
Retained Earnings 1,500,000
Treasury Common Stock (at cost) 150,000
During 2018, Hale Corporation recorded the following transactions: issued 500 shares of common stock for $9,500; re-issued all treasury shares for $140,000; reported net income of $120,000; and paid cash dividends of 50,000.
The total stockholders' equity of Hale Corporation at December 31, 2018 is?
Explanation / Answer
Particulars
Amount
Common Stock
3500000
Preferred Stock
2000000
Retained Earning
1500000
Less: Treasury Stock
-15000
Balance on 31.03.2017
6985000
Add: New Issue
9500
Reissue Treasury Shares
140000
Net Income
120000
Less: Cash Dividend
-50000
Balance On 31.03.2018
7204500
Particulars
Amount
Common Stock
3500000
Preferred Stock
2000000
Retained Earning
1500000
Less: Treasury Stock
-15000
Balance on 31.03.2017
6985000
Add: New Issue
9500
Reissue Treasury Shares
140000
Net Income
120000
Less: Cash Dividend
-50000
Balance On 31.03.2018
7204500