Common Stock, $1 par (2,000,000 shares authorized, 680,000 shares issued and out

Question

Common Stock, $1 par (2,000,000 shares authorized, 680,000 shares issued and outstanding) Paid-in Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income $680,000 1,530,000 691,000 61,000 During 2017, the following transactions and events occurred. 1. Issued 49,500 shares of $1 par value common stock for $2 per share. 2. Issued 56,000 shares of common stock for cash at $5 per share 3. Purchased 15,700 shares of common stock for the treasury at $4.00 per share. 4. Declared and paid a cash dividend of $209,500. 5. Earned net income of $423,000. 6 Had other comprehensive income of $19,000. Prepare the stockholders' equity section of the balance sheet at December 31, 2017 TEAL MOUNTAIN INC. Partial Balance Sheet

Explanation / Answer

TEAL MOUNTAIN INC.

Partial Balance sheet

December 31, 2017

Common Stock = 680000+49500+56000 =785500

Paid in capital in excess of par value = 1530000+(49500*1)+(56000*4) = 1803500

Retained earnings = 691000+423000-209500 = 904500

Accumulated other comprehensive income = 61000+19000 =80000

Treasury stock = 15700*4 = 62800

Stockholders' equity Paid-In Capital Common Stock 785500 Additional paid in capital Paid-In Capital in Excess of par value - common stock 1803500 Total paid in capital 2589000 Retained earnings 904500 Total paid in capital and retained earnings 3493500 Accumulated other comprehensive income 80000 Less: Treasury stock 62800 Total stockholders' equity 3510700

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