Common stock ($15 par value; 112,000 shares authorized, 43,000 shares issued, 40

ID: 2528872 • Letter: C

Question

Common stock ($15 par value; 112,000 shares authorized, 43,000 shares issued, 40,000 shares outstanding) Additional paid-in capital Dividends declared and paid during the year Retained earnings at the beginning of the year Treasury stock at cost (3,000 shares) $645,000 180,000 17,000 69,000 (36,000) Net income for the year was $48,000. The stock price is currently $26.69 per share References Section Break E11-14 Preparing a Statement of Stockholders' Equity and Evaluating Dividend Policy LO11-1, 11-3, 11-4, 11-5 value: 5.00 points E11-14 Part 1 Required: 1. Prepare the stockholders' equity section of the balance sheet at the end of the fiscal year. (Amounts to be deducted should be indicated by a minus sign.) TAC Corporation Balance Sheet (Partial) At December 31, This Fiscal Year Stockholders' equity: Contributed capital Total contributed capital

Explanation / Answer

Answer

Stockholders' Equity:

Working

Amount

Contributed Capital

Common Stock

[43000 x $15]

$ 6,45,000.00

Additional Paid in capital

$ 1,80,000.00

Retained earnings

[69000 - 17000 dividends]

$ 52,000.00

Total contributed capital

$ 8,77,000.00

Less: Treasury Stock

[3000 x $12]

$ (36,000.00)

Total Stockholder's Equity

$ 8,41,000.00