Use the data from E8-50B to prepare the shareholders equity section of the balance sheet at year

Question:

Use the data from E8-50B to prepare the shareholders’ equity section of the balance sheet at year end. Net income for the year was $90,000.

In E8-50B, On the first day of the fiscal year, TH Construction, Inc., had 150,000 shares of $1.00 par common stock issued (at par) and outstanding, and the retained earnings balance was $275,000. Show each of the following transactions in the accounting equation:

1. Issued 10,000 additional shares of common stock for $5 per share

2. Declared and distributed a 10% stock dividend when the market price was $5 per share

3. Issued 20,000 additional shares of common stock for $7 per share

4. Declared a cash dividend on outstanding shares of $0.75 per share

5. Paid the dividend declared in item (4)

6. Purchased 8,000 shares of treasury stock for $9 per share

7. Sold 6,500 shares of treasury stock for $10 per share

8. Sold 1,400 shares of treasury stock for $8 per share

9. Declared 2-for-1 stock split

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...