The following information pertains to Books & Calendars, Inc.:
a. Contributed capital on November 1, 2009, consisted of 75,000 issued and outstanding shares of common stock with par value of $2; additional paid-in capital in excess of par of $375,000; and retained earnings of $525,000.
b. During the first quarter of the fiscal year, Books & Calendars issued an additional 10,000 shares of common stock for $6 per share.
c. On April 15, the company declared a 2-for-1 stock split.
d. On May 31, the company declared and distributed a 10% stock dividend. The market price of the stock on that date was $8 per share.
e. On June 30, the company declared a dividend of $0.25 per share to be paid on July 15.
f. During October 2010, Books & Calendars’ CEO decided the company should buy 2,000 shares of its own stock. At that time, the stock was trading for $9 per share.
g. Net income for the year ended October 31, 2010, was $67,500.
1. Show each of the transactions in the accounting equation.
2. Prepare the shareholders’ equity section of the balance sheet at October 31, 2010.