In: Accounting
Assets: |
|
Current assets |
$11,600 |
Property and equipment, net |
35,000 |
Total assets |
$46,600 |
Liabilities: |
|
Liabilities |
$23,000 |
Stockholders’ equity: |
|
Common stock, $0.10 par (25,000 shares issued and outstanding) |
2,500 |
Preferred stock, $20 par (100 shares issued and outstanding) |
2,000 |
Paid-in capital in excess of par |
7,800 |
Retained earnings |
11,300 |
Total liabilities and equity |
$46,600 |
During 2011, Top of the World, Ltd. completed these transactions that affected stockholders’ equity:
January 15 |
Issued 5,000 shares of common stock for $15 per share. |
February 1 |
Issue 250 shares of preferred stock for $23 per share. |
June 1 |
Declared a cash dividend of $2 per preferred share and $0.50 per common share. |
June 30 |
Paid the cash dividend. |
October 1 |
Reacquired 3,000 shares of common stock as treasury stock, paying $13 per share. |
Taking into account the transactions above, prepare a statement of stockholders’ equity for Top of the World for the period ended December 31, 2011. Use the format used in lecture and provided in your text, Illustration 10-20. Assume net income for 2011 was $6,730.
Date | Account Tittle | Debit | Credit |
15-Jan | Cash (5000 X15) | $75,000.00 | |
Common Stock (5000X$0.10) | $500.00 | ||
Paid in Capital Excess of Par | $74,500.00 | ||
To Record Issuance of Stock | |||
1-Feb | Cash (250 X23) | $5,750.00 | |
Preferred Stock (250X$20) | $5,000.00 | ||
Paid in Capital in Excess of Par | $750.00 | ||
To Record Issuance of Stock | |||
1-Jun | Retained Earning | $15,700.00 | |
Dividend Payable ( 5000+25000)X0.50+(100+250)X2 | $15,700.00 | ||
To Record Dividend Declared | |||
30-Jun | Dividend Payable | $15,700.00 | |
Cash | $15,700.00 | ||
TO Record Cash Dividend Paid | |||
1-Oct | Treasury Stock(13X3000) | $39,000.00 | |
Cash | $39,000.00 |
Statement showing Stockholder Equity | |
Common stock, par value $0.10; | |
issued 30000 and outstanding 27,000 shares | $3,000 |
Preferred stock, par value $20 | |
issued and outstanding 350 shares | $7,000 |
Paid-in
capital in excess of par value (7800+74500+750) |
$83,050 |
Total Paid in Capital | $93,050 |
Retained earnings (11300+6730) | $18,030 |
Less: Treasury Share | -$39,000 |
Total Stock Holder Equity as on 31 Dec 2011 | $72,080 |