Stockholders Equity: Information and Entries from Comparative Data Comparative stockholders equity sections from two successive years of
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Stockholders’ Equity: Information and Entries from Comparative Data
Comparative stockholders’ equity sections from two successive years of balance sheets from Smiley, Inc., are as follows:
Dec. 31, 2012 | Dec. 31, 2011 | |
---|---|---|
Paid-in Capital | ||
8 Percent preferred stock, $50 par value, authorized 20,000 shares; | ||
issued and outstanding, 2011: 8,000 shares; 2012: 12,000 shares | $600,000 | $400,000 |
Common stock, no-par value, $20 stated value, authorized 80,000 | ||
shares; issued, 2011: 32,000 shares; 2012: 40,000 shares | 800,000 | 640,000 |
Additional Paid-in Capital | ||
In excess of par value—Preferred stock | 224,000 | 144,000 |
In excess of stated value—Common stock | 232,000 | 160,000 |
From treasury stock | 21,000 | |
Retained earnings | 300,000 | 229,000 |
$1,573,000 | ||
Less: Treasury stock (7,000 shares common) at cost | 0 | 196,000 |
Total Stockholders’ Equity | $2,177,000 | $1,377,000 |
No dividends were declared or paid during 2012.
Required
Prepare the journal entries for the transactions affecting stockholders’ equity that occurred during 2012. Do not prepare the journal entry for closing net income to retained earnings. Assume that any share transactions were for cash.
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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