Stockholders\' Equity: Transactions and Statement The stockholders\' equity sect
ID: 2599493 • Letter: S
Question
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows Common stock, $3 par value, 300,000 shares authorized, 60,000 shares 180,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 240,000 15,000 255,000 174,000 609,000 69,000 540,000 From treasury stock Retained earnings Less: Treasury stock (6,000 shares) at cost Total Stockholdersât Equity The following transactions affecting stockholdersaf" equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $10 cash per share. Mar. 12 Sold all of the treasury shares for $14 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $12 per share. July 10 Issued the stock dividend declared on June 30 Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $13 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31Explanation / Answer
Journal Entry date Accounting titles & explanations Debit Credit 8-Jan Cash 150000 common stock (15000*3) 45000 addittional paid in capital in excess of par 105000 12-Mar cash (6000*14) 84000 Treasury stock 69,000 Addittional paid in capital from TS 15,000 30-Jun retained earnings (75000*5%)*12 45000 stock div distrbutable (3750*3( 11250 Addittional paid in capital in excess of par 33750 10-Jul Stock dividend distributable 11,250 common stock 11,250 7-Oct Treasury stock 32500 cash (2500*13) 32,500 18-Dec Retained earnings 76250 Dividends payable 76,250 (76250*1) paid in paid in capital Retained Treasury total 2) Common capital in from earnings stock stock excess of par TS balance Jan1 180,000 240,000 15,000 174,000 -69,000 540,000 common shares issue 45,000 105,000 150,000 treasury stock sold 15,000 69,000 84000 stock dividends issued 11,250 33,750 -45000 0 treasury shares acquired -32,500 -32500 cash dividends decalred -76250 -76250 net income 170,500 170500 balance ,December 31 236,250 378,750 30,000 223,250 -32,500 835,750