United Resources Company obtained a charter from the state in January 2014, whic
ID: 2474113 • Letter: U
Question
United Resources Company obtained a charter from the state in January 2014, which authorized 205,000 shares of common stock, $1 par value. During the first year, the company earned $478,000 and the following selected transactions occurred in the order given:
Prepare the stockholders’ equity section of the balance sheet at December 31, 2014. (Amounts to be deducted should be indicated with a minus sign.)
United Resources Company obtained a charter from the state in January 2014, which authorized 205,000 shares of common stock, $1 par value. During the first year, the company earned $478,000 and the following selected transactions occurred in the order given:
Explanation / Answer
Common stock authorized and issued 82000 shares at par value of $ 1 82000 Additional paid in capital -common stock [82000*(13-1)] 984000 Additional paid in capital [(19- 16 ) *4000] -Treasury stock 12000 Retained earning 478000 Total paid in capital 1556000 Less:Treasury stock [26000-4000 = 22000 * 16 ] - 352000 Stockholders equity 1,204,000
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