Question

The shareholders’ equity section of Gilman Company’s balance sheet appeared as follows on August 15, 2010:
Common stock—$ 1 par value, 1,000,000 shares authorized,
400,000 shares issued and outstanding ......... $ 400,000
Paid- in capital in excess of par ............. 500,000
Total contributed capital ...............$ 900,000
Retained earnings ................... 606,000
Total shareholders’ equity ............... $ 1,506,000
1. On August 15, 2010, the board of directors declared a 5 percent stock dividend. The date of distribution was September 25, 2010, to the shareholders of record on September 1, 2010. The stock was selling for $ 10 per share on the date of declaration.
2. On November 30, 2010, Gilman Company repurchased and held as treasury stock 1,000 shares of its common stock at $ 11 per share. 3. Gilman generated $ 100,000 of net income in 2010.
Required:
A. Make the entries to record these equity events.
B. Prepare the shareholders’ equity section of the balance sheet at December 31, 2010.


$1.99
Sales0
Views24
Comments0
  • CreatedMarch 25, 2015
  • Files Included
Post your question
5000