Dirk Company reported the following balances at December 31, 2016: common stock

Question

Dirk Company reported the following balances at December 31, 2016: common stock $409,000, paid-in capital in excess of par value—common stock $100,000, and retained earnings $259,000. During 2017, the following transactions affected stockholders' equity.

1. Issued preferred stock with a par value of $120,000 for $190,000.

2. Purchased treasury stock (common) for $37,000.

3. Earned net income of $141,500.

4. Declared and paid cash dividends of $57,000.

Prepare the stockholders’ equity section of Dirk Company’s December 31, 2017, balance sheet.

Explanation / Answer

Common Stock 409000 Preferred Stock at par value 120000 Add: Additional Paid in capital Common stock 100000 Preferred Stock    70000 170000 Total paid in capital Add: Retained earning 343500 (259000+141500-57000) Subtotal 1042500 Less: Treasury Stock (Common) 37000 Stockholder's equity 1005500

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.