On January 1, 2014, Kessler Inc. had these stockholders’ equity balances. During
ID: 2494453 • Letter: O
Question
On January 1, 2014, Kessler Inc. had these stockholders’ equity balances.
During 2014, the following transactions and events occurred.
Prepare the stockholders’ equity section of the balance sheet at December 31, 2014.
KESSLER INC.
Partial Balance Sheet
December 31, 2014
MY QUESTION IS TO FILL IN THE "WHAT GOES HERE PORTION OF THE BALANCE SHEET)
--------------------------------------- (what goes here)
COMMON STOCK 710000
ADDITIONAL PAID IN CAPITAL
PAID IN CAPITAL IN EXCESS OF PAR (WHAT IS THE NUMBER THAT GOES HERE)
TOTAL PAID IN CAPITAL (WHAT IS THE NUMBER THAT GOES HERE)
RETAINED EARNINGS 903000
TOTAL PAID IN CAPITAL & RETAINED EARNINGS (WHAT NUMBER GOES HERE)
LESS: TREASURARY STOCK 76000
TOTAL STOCKHOLDER EQUITY 3317000
Common Stock, $1 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) $600,000 Paid-in Capital in Excess of Par Value 1,500,000 Retained Earnings 700,000Explanation / Answer
Kessler Inc.
Partial Balance Sheet
December 31, 2014
* Common stock as on December 31, 2014 = Balance as on December 31, 2013 + Common Stock issued during 2014 = $ 600,000 + 50,000 x $ 1 + 60,000 x $ 1 = $ 710,000
** Additional paid in capital as on December 31, 2014 = $ 1,500,000 + 50,000 x $ 2 + 60,000 x $ 3 = $ 1,780,000.
*** Retained Earnings as on December 31, 2014 = Beginning Retained Earnings + Net Income - Dividends = $ ( 700,000 + 410,000 - 207,000) = $ 903,000.
$ $ Stockholders' equity Common stock $ 1 par( 2,000,000 shares authorized, 710,000 shares issued and outstanding) 710,000* Additional paid-in capital Paid - in capital in excess of par 1,780,000** Total paid in capital 2,490,000 Retained earnings 903,000*** Total paid-in capital and retained earnings 3,393,000 Less Treasury stock 76,000 Total stockholders' equity 3,317,000Related Questions
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