On January 1, 2014, Goodhue Inc. had the following stockholders equity balances. Common Stock (400,000 shares issued) .......... $800,000Paid-in Capital in Excess of Par Common Stock ...... 500,000 Common Stock Dividends Distributable .......... 120,000Retained Earnings ................... 600,000During 2014, the following transactions and events occurred.1. Issued 60,000 shares of $2 par value common stock as a result of 15% stock dividend
Chapter 11, Problem Set A #9
On January 1, 2014, Goodhue Inc. had the following stockholders’ equity balances.
Common Stock (400,000 shares issued) .......... $800,000
Paid-in Capital in Excess of Par—Common Stock ...... 500,000
Common Stock Dividends Distributable .......... 120,000
Retained Earnings ................... 600,000
During 2014, the following transactions and events occurred.
1. Issued 60,000 shares of $2 par value common stock as a result of 15% stock dividend declared on December 15, 2013.
2. Issued 30,000 shares of common stock for cash at $4 per share.
3. Purchased 25,000 shares of common stock for the treasury at $5 per share.
4. Declared and paid a cash dividend of $111,000.
5. Sold 8,000 shares of treasury stock for cash at $5 per share.
6. Earned net income of $360,000.
Instructions
Prepare a stockholders’ equity statement for the year.
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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Common Stock (400,000 shares issued) .......... $800,000
Paid-in Capital in Excess of Par—Common Stock ...... 500,000
Common Stock Dividends Distributable .......... 120,000
Retained Earnings ................... 600,000
During 2014, the following transactions and events occurred.
1. Issued 60,000 shares of $2 par value common stock as a result of 15% stock dividend declared on December 15, 2013.
2. Issued 30,000 shares of common stock for cash at $4 per share.
3. Purchased 25,000 shares of common stock for the treasury at $5 per share.
4. Declared and paid a cash dividend of $111,000.
5. Sold 8,000 shares of treasury stock for cash at $5 per share.
6. Earned net income of $360,000.
Instructions
Prepare a stockholders’ equity statement for the year.
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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For 
Financial and managerial accounting
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
ISBN: 978-1118016114