Question

At December 31, 2011, Fernandes, Corp., reported the following stockholders’ equity.
Paid-in Capital:
Common Stock, $6 par, 200,000 shares authorized,
140,000 shares issued.............. $ 840,000
Additional Paid-in Capital............ 145,000
Total Paid-in Capital............... 985,000
Retained Earnings............... 670,000
Subtotal................... 1,655,000
Less: Treasury stock, 2,200 shares at cost........ (63,800)
Total Stockholders’ Equity............. $1,591,200

During 2012 Fernandes completed these transactions and events in this order:
a. Sold 500 shares of treasury stock for $35 per share; the cost of these shares was $29 per share.
b. Issued 1,1 00 shares of common stock at $20 per share.
c. Net income for the year was $203,000.
d. Declared and paid cash dividends of $40,000.

Requirement
1. Prepare Fernandes’s statement of stockholders’ equity for the year ended December 31, 201 2.



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  • CreatedApril 29, 2014
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