Transcribed: Ming Corp. completed the following transactions during 2018: Issued

Question

Transcribed:

Ming Corp. completed the following transactions during 2018:

Issued 2,000 shares of $10 par common stock for $16 per share.

Repurchased 500 shares of its own common stock for $18 per share.

Resold 120 shares of treasury stock for $20 per share.

Earned $85,000 of cash revenue.

Paid $42,000 of cash operating expenses.

Required

Prepare the stockholders’ equity section of the year-end balance sheet.

The following information pertains to Ming Corp. at January 1, 2018: Common stock, $10 par, 50,000 shares authorized, 3,000 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $30,000 12,000 46,000 Ming Corp. completed the following transactions during 2018: 1. Issued 2,000 shares of $10 par common stock for $16 per share. 2. Repurchased 500 shares of its own common stock for $18 per share. 3. Resold 120 shares of treasury stock for $20 per share. 4. Earned $85,000 of cash revenue. 5. Paid $42,000 of cash operating expenses Required Prepare the stockholders' equity section of the year-end balance sheet. MING CORPORATION Balance Sheet (Partial) As of December 31, 2018 Stockholders' Equity Total paid-in capital Total stockholders' equity

Explanation / Answer

Ming corporation Balancesheet As of december 31 2018 Stockholders equity common stock $ 10 par,50000shares authorized,5000shares issued [3000+2000issued]*10 50000 paid in capital in excess of par ,common stock [12000beginning+(16-10)*2000issued] 24000 paid in capital in excess of cost-trasury stock [(20-18 )*120 240 Total paid in capital 74240 Retained earning [(85000-42000)net income+46000] 89000 less: Treasury stock [(500-120)*18] -6840 Total stockholders equity 156400

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