Acct2301 Chapter 10 Professor: On January 1, 20A, the accounts of Mac Corporatio

Question

Acct2301 Chapter 10 Professor: On January 1, 20A, the accounts of Mac Corporation showed the following: Common Stock, par $1, authorized 100,000 shares Capital in excess of par value ($2 per share) Retained Earnings $60,000 $140,000 During 20A, the following transactions affecting stockholders' equity occurred (in the order given): A. Issued a 10% stock dividend when the market price was at $5 per share. B. Purchased treasury stock, 1,000 shares at a total cost of $8,000. C. Declared and paid cash dividends, $20,000. D. Net income for 20A, $25,000. Required: The stockholders' equity section of the balance sheet for the company must be prepared for the December 31, 20A balance sheet. It is given below with certain amounts missing. Supply the missing amounts by entering them in the blanks STOCKHOLDER'S EQUITY Common Stock, par $1, authorized shares 100,000 shares, issued Capital in Excess of Par Value Total Contributed Capital Retained Earnings Total Stockholders' Equity before Treasury Stock $ Treasury Stock, shares Total Stockholders' equity

Explanation / Answer

STOCKHOLDER'S EQUITY: Common stock, par $1, authorized shares 100,000 shares, issued 33000 shares 33000 Capital in excess of par value (60000+3000*4) 72000 Total contributed capital 105000 Retained earnings (140000-3000*5+25000-20000) 130000 Total stockholders' equity before Treasury stock 235000 Treasury stock, shares 1000 8000 Total stockholders' equity 227000

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