At December 31, 2010, Pacheco Mall, Inc., reported stockholders equity as follows: Common stock , $1.75 par,

Question:

At December 31, 2010, Pacheco Mall, Inc., reported stockholders equity as follows:
, $1.75 par, 400,000 shares
authorized, 310,000 shares issued ........................ $ 542,500
Additional paid-in capital....................................... 700,000
Retained earnings................................................... 630,000
$1,872,500
During 2011, Pacheco Mall completed these transactions (listed in chronological order):
a. Declared and issued a 2% stock on the outstanding stock. At the time,
Pacheco Mall stock was quoted at a market price of $20 per share.
b. Issued 2,000 shares of common stock at the price of $18 per share.
c. Net income for the year, $342,000.
d. Declared cash dividends of $187,000.

Requirement
1. Prepare Pacheco Mall, Inc.’s statement of stockholders equity for 2011.

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... 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...