Pueblo, Inc., ended 2021 with 8 million shares of $1 par common stock issued and outstanding. On December 31, 2021, additional paid-in capital was $16 million, and retained earnings totaled $38 million. 

? In April 2022, Pueblo issued 6 million shares of common stock at a price of $3 per share.

? In June, the company declared and distributed a 10% stock dividend at a time when Pueblo’s common stock had a market value of $13 per share.

? Then in September, Pueblo’s stock price dropped to $1 per share and the company purchased 6 million shares of treasury stock.

? For the year, Pueblo earned net income of $26 million and declared cash dividends of $15 million.

Requirement 

1. Complete the following tabulation to show what Pueblo, Inc., should report for stockholders’ equity at December 31, 2022. Journal entries are not required.

Transcribed Image Text:

(Amounts in millions) Balance, Dec 31, 2021. Issuance of stock.. Stock dividend......... Purchase of treasury stock. Net income....... Cash dividends....... Balance, Dec 31, 2022..... Common Stock $8 + Additional Paid-In Capital + Earnings Retained. $16 $38 Treasury Stock 0 Total = Equity $62