Question

Use the following to answer questions 6 – 12
TR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common. As of the beginning of 20XD, 10,000 shares of preferred stock and 600,000 shares of common stock have been issued. Record the following transactions to complete the Statement of Stockholders’ Equity:

		Affect on Stockholders’ Equity
1-Mar	Issue 100 additional shares of preferred stock for $103.50 per share
1-Apr	Issue 100,000 additional shares of common stock for $15.00 per share
1-Jun	Declare a cash dividend on both common and preferred stock of $0.15 per share to all stockholders of record on June 15.
30-Jun	Pay the cash dividend declared on June 1.
1-Aug	Repurchase 15,000 shares of common treasury stock for $17per share
1-Oct	Reissue 10,000 shares of treasury stock purchased on August 1 for $20.00 per share
31-Dec	Net income for the year was $298,600.

The beginning balances are shown below.

	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Total Stockholders' Equity
Beginning balance 20XD	$1,000,000	$6,000	$5,754,000	$421,500	$0	$7,181,500
include changes to get ending balances

6.     $____________ When the shares were issued on March 1, how much did additional paid in capital increase?

7.     $__________ On August 1st when the shares were repurchased, how much did stockholders’ equity decrease?

8.     $____________ On August 1st when the shares were repurchased, how much did net income decrease?

9. $____________On October 1st when the 10,000 shares were reissued, how much did additional paid in capital change (if decrease put “-“ in front of the number)?   

10. $______________On June 1st when the dividend was declared, how much did retained earning decrease?

11. $______________Compute ending retained earnings on December 31st.

12.          $______________Compute ending stockholders equity on December 31st.   

Answer 1