During the current year, Thomson had the following stock transactions ( The company authorizes the sale of 10 preferred stock, 50,000 shares at par value of $50 ( Sold 20,000 shares of preferred stock at $75 per share ( Purchased 5,000 shares of common stock at $20 per share for cash ( Declared and...

Stock holders equity at begging of year 87500000 Issue of 20000 ...

During the current year, Thomson had the following stock transactions: ( The company authorizes the sale of

Question:

During the current year, Thomson had the following stock transactions:
( The company authorizes the sale of 10% preferred stock, 50,000 shares at of $50.
( Sold 20,000 shares of preferred stock at $75 per share
( Purchased 5,000 shares of at $20 per share for cash
( Declared and distributed a 2% stock to common stockholders when market price was $25 per share.
( Declared and paid $90,000 in cash dividends to common and preferred stockholders.
( Sold 2,000 shares of treasury stock at $16 per share
( Net loss is $134,000.
Thomson Equity
December 31, 2013
Common stock (40,000 authorized, 25,000 issued and
outstanding with of $10 per share.)..........................................$ 250,000.00
Excess paid in capital on common stock................................................$ 125,000.00
Retained Earnings...........................................................................$ 500,000.00
Total stockholder's equity..................................................................$ 875,000.00
Required:
Prepare the stockholder's equity section of the for year‐end 2013.
Common Stock
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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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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... 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,...