Beginning balances in the equity accounts were as follows: Common stock, at par . . . .

Question:

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.

(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.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...