Question

In: Accounting

On January 1, 2022, Sage Hill Inc. had these stockholders’ equity balances. Common Stock, $1 par...

On January 1, 2022, Sage Hill Inc. had these stockholders’ equity balances.

Common Stock, $1 par (2,500,000 shares authorized, 650,000 shares issued and outstanding) $650,000
Paid-in Capital in Excess of Par Value 1,420,000
Retained Earnings 698,000 Accumulated Other Comprehensive Income 50,000

During 2022, the following transactions and events occurred.
1. Issued 46,500 shares of $1 par value common stock for $2 per share.
2. Issued 61,000 shares of common stock for cash at $6 per share.
3. Purchased 22,500 shares of common stock for the treasury at $3.05 per share.
4. Declared and paid a cash dividend of $205,500.
5. Earned net income of $422,000.
6. Had other comprehensive income of $15,800.

Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.

Solutions

Expert Solution

Stockholder's equity section
$
Common stock,$1 par (2500000 shares authorized,757500 shares issued
and 735000 shares outstanding) (Note:1) 757500
Paid-in capital in excess of par value (Note:2) 1771500
Retained earnings (Note:3) 914500
Accumulated other comprehensive income (50000+15800) 65800
Treasury stock (22500*3.05) -68625
Total stockholder's equity 3440675
Note:1
Shares issued:
Nos.
Beginning balance 650000
Add:
common stock issued (46500+61000) 107500
Total 757500
Shares outstanding:
Nos.
Total shares issued 757500
Less: Treasury shares purchased 22500
Shares outstanding 735000
Common stock in $=757500*1=$ 757500
Note:2
Paid-in capital in excess of par value
$
Beginning balance 1420000
Add:Common stock issued
46500*(2-1) 46500
61000*(6-1) 305000
Total 1771500
Note:3
Retained earnings
$
Beginning balance 698000
Add: Net income 422000
1120000
Less: Cash dividend 205500
Ending balance 914500

Related Solutions

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...
On January 1, 2022, Riverbed Corp. had these stockholders’ equity accounts. Common Stock ($10 par value,...
On January 1, 2022, Riverbed Corp. had these stockholders’ equity accounts. Common Stock ($10 par value, 71,500 shares issued and outstanding) $715,000 Paid-in Capital in Excess of Par Value 486,500 Retained Earnings 665,000 During the year, the following transactions occurred. Jan. 15 Declared a $0.60 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of record on April...
On January 1, 2022, Tacoma Corporation had these stockholders’ equity accounts. Common Stock ($10 par value,...
On January 1, 2022, Tacoma Corporation had these stockholders’ equity accounts. Common Stock ($10 par value, 70,000 shares issued and outstanding) $700,000 Paid-in Capital in Excess of Par Value 500,000 Retained Earnings 620,000 During the year, the following transactions occurred. Jan. 15 Declared a $0.50 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of record on April...
On January 1, 2022, Bridgeport Corp. had these stockholders’ equity accounts. Common Stock ($10 par value,...
On January 1, 2022, Bridgeport Corp. had these stockholders’ equity accounts. Common Stock ($10 par value, 66,500 shares issued and outstanding) $665,000 Paid-in Capital in Excess of Par Value 481,500 Retained Earnings 615,000 During the year, the following transactions occurred. Jan. 15 Declared a $0.40 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of record on April...
On January 1, 2022, Marigold Corp. had these stockholders’ equity accounts. Common Stock ($10 par value,...
On January 1, 2022, Marigold Corp. had these stockholders’ equity accounts. Common Stock ($10 par value, 68,500 shares issued and outstanding) $685,000 Paid-in Capital in Excess of Par Value 483,500 Retained Earnings 635,000 During the year, the following transactions occurred. Jan. 15 Declared a $0.70 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of record on April...
On January 1, 2022, Blue Spruce Corp. had these stockholders’ equity accounts. Common Stock ($10 par...
On January 1, 2022, Blue Spruce Corp. had these stockholders’ equity accounts. Common Stock ($10 par value, 72,500 shares issued and outstanding) $655,000 Paid-in Capital in Excess of Par Value 480,500 Retained Earnings 605,000 During the year, the following transactions occurred. Jan. 15 Declared a $0.60 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of record on...
On January 1, 2017, Indigo Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...
On January 1, 2017, Indigo Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par value, 81,500 shares issued and outstanding) $ 815,000 Paid-in Capital in Excess of Par Value 503,000 Retained Earnings 635,000 During the year, the following transactions occurred. Jan. 15 Declared a $ 0.40 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par value,  75,500 shares issued and outstanding) $ 755,000 Paid-in Capital in Excess of Par Value 484,500 Retained Earnings 685,000 During the year, the following transactions occurred. Jan. 15 Declared a $ 0.40 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a  10% stock dividend to stockholders of record on...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par value,  75,500 shares issued and outstanding) $ 755,000 Paid-in Capital in Excess of Par Value 484,500 Retained Earnings 685,000 During the year, the following transactions occurred. Jan. 15 Declared a $ 0.40 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a  10% stock dividend to stockholders of record on...
Roman Company had the following stockholders’ equity as of January 1, 2010. Common Stock, $2 par...
Roman Company had the following stockholders’ equity as of January 1, 2010. Common Stock, $2 par value, 50,000 shares issued               $100,000 Paid-in capital in excess of par                                               $300,000 Paid-in capital Treasury Stock                                                 $   1,000 Retained earnings                                                                   $319,000 Total stockholder’s equity                                         $720,000 During 2010, the following transactions occurred: Jan 31        Roman issued 5,000 shares of common stock at $10 per share. Feb 25       Roman repurchased 1,900 shares of treasury stock at a price of $18 per share. Mar 2         1,200...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT