Question

At the end of 2011, Stanley Utilities Inc. had the following equity accounts and balances:
Common stock, $1 par ...........$4,500,000
Additional paid-in capital—common stock ...1,375,000
Retained earnings .............188,000
During 2012, Stanley Utilities engaged in the following transactions involving its equity accounts:
a. Sold 3,300 shares of common stock for $15 per share.
b. Sold 1,000 shares of 12 percent, $100 par preferred stock at $105 per share.
c. Declared and paid cash dividends of $8,000.
d. Repurchased 1,000 shares of treasury stock (common) for $38 per share.
e. Sold 400 of the treasury shares for $42 per share.

Required:
1. Prepare the journal entries for a through e.
2. Assume that 2012 net income was $87,000. Prepare a statement of stockholders’ equity at December 31, 2012.


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  • CreatedSeptember 22, 2015
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