Tribal Marine obtained a charter from the state in January that authorized 1,000

Question

Tribal Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $410,000 of net income and the following selected transactions occurred in the order given:

a. Issued 110,000 shares of the common stock at $56 cash per share.

b. Reacquired 26,000 shares at $51 cash per share.

c. Reissued 10,500 shares from treasury for $52 per share.

d. Reissued 10,500 shares from treasury for $50 per share.

1) Prepare the stockholders’ equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.) (What I have so far!)

Tribal Marine

Balance Sheet (partial, fill in blanks)

At December 31

Stockholder's Equity Contributed Capital:

Total Contributed Capital:

Total:

Total Stockholder's Equity:

Explanation / Answer

stockholders’ equity section Share capital Additional paid incapital retained earnings total Net income                      410,000         410,000 Issued           550,000                                 5,610,000     6,160,000 reacquired         (130,000)                              (1,196,000) (1,326,000) reissued              52,500                                    493,500         546,000 reissued              52,500                                    472,500         525,000 Total           525,000                                 5,380,000                      410,000     6,315,000

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