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In: Accounting
On January 1, 2022, Larkspur, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,200,000...
On January 1, 2022, Larkspur, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,200,000 shares authorized, 675,000 shares issued and outstanding) $675,000 Paid-in Capital in Excess of Par Value 1,440,000 Retained Earnings 703,000 Accumulated Other Comprehensive Income 47,000 During 2022, the following transactions and events occurred. 1. Issued 47,500 shares of $1 par value common stock for $4 per share. 2. Issued 57,000 shares of common stock for cash at $6 per share. 3. Purchased 22,100 shares of common stock for the treasury at $3.40 per share. 4. Declared and paid a cash dividend of $113,000. 5. Earned net income of $407,000. 6. Had other comprehensive income of $17,400. Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.
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| No | General Journal | Debit | Credit |
| 2022 | |||
| 1) | Cash (47,500 shares * $ 4 ) | $ 190,000 | |
| Common stock (47,500 shares *$ 1 ) | $ 47,500 | ||
| Paid in Capital in excess of Par value-Common Stock (47,500 shares*$3) | $ 142,500 | ||
| (To record issues of Common stock 47,500 shares @ $ 4 per share ) | |||
| 2) | Cash (57,000 shares * $ 6 ) | $ 342,000 | |
| Common stock (57,000 shares *$ 1 ) | $ 57,000 | ||
| Paid in Capital in excess of Par value-Common Stock (57,000 shares*$5) | $ 285,000 | ||
| (To record issues of Common stock 57,000 shares @ $ 6 per share ) | |||
| 3) | Treasury Stock (22,100 shares * $ 3.40 ) | $ 75,140 | |
| Cash | $ 75,140 | ||
| (To record Purchase of Treasury stock 22,100 shares @ 3.40 per share ) | |||
| 4) | Retained Earnings | $ 113,000 | |
| Cash | $ 113,000 | ||
| (To record declared and paid Cash dividends ) | |||
| 5) | Income Summary | $ 407,000 | |
| Retained earnings | $ 407,000 | ||
| (To record Net income transferred to Retained earnings ) |
| Larkspur Inc. | |
| Stockholder's Equity Section | |
| As on December 31,2022 | |
| Stockholders Equity : | |
| Paid in capital : | |
| Capital Stock : | |
| Common Stock ,$1 Par (2,200,000 shares authorized ,801,600 shares issued and 779,500 Outstanding) | $ 779,500 |
| Additional Paid in capital : | |
| Paid in capital in excess of Par value -Common stock (1,440,000+142,500+285,000) | $ 1,867,500 |
| Total Paid in Capital | $ 2,647,000 |
| Retained earnings ($703,000-$113,000+$ 407,000) | $ 997,000 |
| Total Paid in Capital and Retained Earnings | $ 3,644,000 |
| Less: Treasury Stock (22,100 shares *$ 3.40 per share ) | ($ 75,140 ) |
| Stockholders Equity | $ 3,568,860 |
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