National Supply\'s shareholders\' equity included the following accounts at Dece

Question

National Supply's shareholders' equity included the following accounts at December 31, 2010:

Shareholders' Equity
Common stock, 6 million shares at $1 par $ 6,000,000
Paid-in capital—excess of par 30,000,000
Retained earnings 86,500,000

Prepare the shareholders’ equity section of National Supply’s balance sheet at December 31, 2013, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2011, $15 million in 2012, and $16 million in 2013. No dividends were paid during the three-year period.


Shareholders’ Equity SHARES RETIRED TREASURY STOCK

Paid-in capital: $___________ $___________
Common stock $___________ $___________
Paid-in capital – excess of par $___________ $___________
Paid-in capital – share repurchase $___________ $___________
Retained earnings $___________ $___________
Less: Treasury stock $___________ $___________

Total shareholders’ equity $___________ $___________

Explanation / Answer

Paid-in capital: $30,000,000 $30,000,000 Common stock $Nil $NIl Paid-in capital – excess of par $30,000,000 $30,000,000 Paid-in capital – share repurchase $$ 6,000,000 $$ 6,000,000 Retained earnings $86,500,000 $86,500,000 Less: Treasury stock $Nil $6,000,000 Happy to help

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