Beginning balances in the equity accounts were as follows Common stock
Beginning balances in the equity accounts were as follows:
Common stock, at par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500
Paid-in capital in excess of par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Accumulated other comprehensive income. . . . . . . . . . . . . . . . . . . . . . . . (2,200)
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,000)
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,300

The following is true for the year:
(a) Net income was $4,500.
(b) Equity increased $300 from an increase in value of available-for-sale securities.
(c) Dividends were $1,000.
(d) Treasury stock of $1,200 was purchased. Assume the cost method.
(e) Shares of stock for $500 were issued. Par value was $40.

Prepare a statement of changes in stockholders’ equity for the year.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help