Statement of Stockholders\' Equity At the end of 2013, Haley Corporation had the

Question

Statement of Stockholders' Equity At the end of 2013, Haley Corporation had the following equity accounts and balances: During 2014, Haley engaged in the following transactions involving its equity accounts: a.Sold 5,000 shares of common stock for $19 per share. b.Sold 1,200 shares of 12%, $50 par preferred stock at $75 per share. c.Declared and paid cash dividends of $22,000. d.Repurchased 1,000 shares of treasury stock (common) for $24 per share. e.Sold 300 of the treasury shares for $26 per share. Required: Hide 1. Prepare the journal entries for Transactions a through e. For a compound transaction, if an amount box does not require an entry, leave it blank. 2014 a. (Record sale of common stock) b. (Record sale of preferred stock) c. (Record declaration and payment of dividends) d. (Record purchase of treasury shares) e. (Record reissue of treasury shares) Hide 2. Assume that 2014 net income was $123,700. Prepare a statement of stockholders' equity at December 31, 2014. Haley Corporation Balance Sheet (Partial) December 31, 2014 Stockholders' equity: $ Additional paid-in capital: $ Total capital stock $ Less: Total stockholders' equity $

Explanation / Answer

a) Common stock (cr) 5000*19=$95,000
cash (db) $95,000

b)cash (db) 75*1200=$90,000
Prefered stock (cr) 90,000

c) Cahs (cr) 22,000
dividend paid (db) 22,000

d)Cash (cr) 1000*26=$26,000
treasury stock (db) 24,000

6)cash (db) 300*26=7800
treasury stock (cr) 7800

2)Statement of stock holder equity

Common stock (db) 95,000
Prefered stock (cr) 90,000

TReasury stock (db)16200
Retained earmnings (cr) 123700-22000=$101,700

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