Components of Stockholders Equity Nash Company has the following accounts among the items on its balance sheet

Question:

Components of Stockholders’ Equity Nash Company has the following accounts among the items on its balance sheet at December 31, 2010:

Common Stock, $10 par, 10,000 shares authorized, 9,000 issued, 8,000 outstanding

Preferred Stock, $100 par, 8%, cumulative, 1,000 shares authorized, issued, and outstanding

Cash Dividend Payable ..............$ 50,000

Retained Earnings ................. 100,000

Additional Paid-In Capital................. 200,000

Investment in Common Stock of Horton Company .... 60,000

Treasury Stock, 1,000 shares, common stock ........ 20,000

Accumulated Other Comprehensive Income—Unrealized

Gain on Investment Security .............. 5,000


Required

Develop the Stockholders’ Equity section of the balance sheet for Nash Company at December 31, 2010.


Common Stock
Common 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...
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