Question

On December 31, 2013, Peabody Company had 820,000 shares of $10 par common stock issued and outstanding. At December 31, 2013, stockholders’ equity had the amounts listed here.
Common Stock......................$8,200,000
Additional Paid-in Capital...................2, 460,000
Retained Earnings.......................1,600,000
Transactions during 2014 and other information related to stockholders’ equity accounts were as follows.
1 On January 18, 2014, issued at $107 per share 80,000 shares of $100 par value, 7% cumulative preferred stock.
2 On March 23, 2014, reacquired 20,000 shares of its common stock for $15 per share.
3 On May 15, 2014, declared the yearly cash dividend on preferred stock, payable June 12, 2014, to stockholders of record on May 31, 2014.
4 On June 8, 2014, declared a cash dividend of $2.00 per share on the common stock outstanding, payable on July 10, 2014, to stockholders of record on July 1, 2014.
5 Net income for the year was $2,900,000.
Instructions
Prepare the stockholders’ equity section of Peabody’s balance sheet at December 31, 2014.



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  • CreatedApril 07, 2014
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