United Resources Company obtained a charter from the state in January 2014, whic
ID: 2489004 • Letter: U
Question
United Resources Company obtained a charter from the state in January 2014, which authorized 200,000 shares of common stock, $1 par value. During the first year, the company earned $590,000 and the following selected transactions occurred in the order given:
Required:
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 200,000 shares of common stock, $1 par value. During the first year, the company earned $590,000 and the following selected transactions occurred in the order given:
Explanation / Answer
Answer:
Particulars Amount ($) Paid in capital: Common stock, $1 par, 200,000 shares authorized, 100,000 shared issued at $1 100000 Total capital stock 100000 Additional Paid in capital: Paid-in capital in excess of par value—common stock 1100000 Paid-in capital in excess of par value—Treasury stock (5000*3) 15000 Total additional paid in capital 1115000 Total paid-in capital 1215000 Retained earnings 590000 Total paid-in capital and retained earnings 1805000 Less: Treasury stock (15000*15) 225000 Total stock holder equity 1580000Related Questions
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