Question

List and explain four entries that affect the Statement of Stockholder’s Equity.

Answer 1

	The following are the four transactions that affect Statement of stockholder's Equity
S.No.	General,Journal	Debit	Credit	Explanation
1)	Cash(65000*$62)	$                        40,30,000.00		When additional shares are issued in excess of par value both common stock and additional paid in capital increased.
	Common Stock(65000*$1)		$                65,000.00
	Additional Paid in Capital(65000*61)		$          39,65,000.00
				When purchased of treasury stock ,results reduced common stock .
2)	Treasury Shares(6000*$65)	$                          3,90,000.00
	Cash		$            3,90,000.00
3)	Retained Earnings(100000+65000-6000)*2	$                          3,18,000.00		When dividend are declared,results decreased in retained earning.
	Dividend Payable		$            3,18,000.00
4)	Cash(3000*$70)	$                          2,10,000.00		When reissued treasury stock,results reduction in treasury stock earlier purchased.
	Trasury Stock(3000*65)		$            1,95,000.00
	Additional Paid in capital(3000*($70-$65))		$                15,000.00
		ABC Corporation
		Stockholder's equity
	Common Stock	Additional Paid in Capital	Retained Earnings	Trasury Stock	Total Stockholder's Equity
Balance on January 1	$                                                           1,00,000.00	$                        55,00,000.00	$          30,00,000.00	$                                                                  -	$                         86,00,000.00
Issue common Stock	$                                                              65,000.00	$                        39,65,000.00			$                         40,30,000.00
Repurchased Treasury stock				$                                             -3,90,000.00	$                          -3,90,000.00
Dividend Paid			$          -3,18,000.00		$                          -3,18,000.00
Reissued Treasury Stock		$                              15,000.00		$                                               1,95,000.00	$                            2,10,000.00
Net Income			$            7,00,000.00		$                            7,00,000.00
Total	$                                                           1,65,000.00	$                        94,80,000.00	$          33,82,000.00	$                                             -1,95,000.00	$                      1,28,32,000.00