At the end of the 2009 annual reporting period, El Paso Corporations balance sheet showed the following:
Question:
At the end of the 2009 annual reporting period, El Paso Corporation’s balance sheet showed the following:
EL PASO CORPORATION
Balance Sheet
At December 31, 2009
Stockholders’ Equity
Contributed capital
Common stock (par $15; 6,000 shares) ........$ 90,000
Paid-in capital .................. 13,000
Total contributed capital .............. 103,000
Retained earnings
Ending balance ................. 44,000
Total stockholders’ equity .............$147,000
During 2010, the following selected transactions (summarized) were completed:
a. Sold and issued 1,000 shares of common stock at $25 cash per share (at year-end).
b. Determined net income, $43,000.
c. Declared and paid a cash dividend of $2 per share on the beginning shares outstanding.
Required:
1. Prepare the stockholders’ equity section of the balance sheet at December 31, 2010.
2. Give the journal entry to record the sale and issuance of the 1,000 shares of common stock.
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Req 1 EL PASO CORPORATION Balance Sheet December 3...View the full answer
