The following balances are taken from Henri Corporation's balance sheet as of 12/31/Year 5. . Stockholders'...

 

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The following balances are taken from Henri Corporation's balance sheet as of 12/31/Year 5. . Stockholders' Equity Common stock, $1 par (20,000 shares) Additional paid-in-capital- common stock Retained earnings Accumulated other comprehensive income Total stockholders' equity . 20,000 325,000 980,000 Henri reported the following income items and transactions with owners during year 6: • In March of the current year, the company issued 5,000 shares of $1 par value common stock for $30 per share. 100,000 1,425,000 The company declared $5,000 of dividends on December 31st to be paid the following January. Unrealized losses on available for sale debt securities totaled $15,000 (net of tax). In addition, consider the following: . At the beginning of Year 6, the company changed the cost flow assumption used for valuing inventory. The company now uses the FIFO method rather than the LIFO method to value inventory. The cumulative effect on net income of making this change, for all years prior to Year 6, resulted in an increase of $95,000. Year 6 net income was calculated using the new principle. • It was discovered during the year that the company failed to record sales revenue of $75,000 in Year 2. The tax rate for Year 2 was 40%. Based on the information presented above, prepare a statement of stockholders' equity for Henri Corp. for the year ended December 31, Year 6. The following balances are taken from Henri Corporation's balance sheet as of 12/31/Year 5. . Stockholders' Equity Common stock, $1 par (20,000 shares) Additional paid-in-capital- common stock Retained earnings Accumulated other comprehensive income Total stockholders' equity . 20,000 325,000 980,000 Henri reported the following income items and transactions with owners during year 6: • In March of the current year, the company issued 5,000 shares of $1 par value common stock for $30 per share. 100,000 1,425,000 The company declared $5,000 of dividends on December 31st to be paid the following January. Unrealized losses on available for sale debt securities totaled $15,000 (net of tax). In addition, consider the following: . At the beginning of Year 6, the company changed the cost flow assumption used for valuing inventory. The company now uses the FIFO method rather than the LIFO method to value inventory. The cumulative effect on net income of making this change, for all years prior to Year 6, resulted in an increase of $95,000. Year 6 net income was calculated using the new principle. • It was discovered during the year that the company failed to record sales revenue of $75,000 in Year 2. The tax rate for Year 2 was 40%. Based on the information presented above, prepare a statement of stockholders' equity for Henri Corp. for the year ended December 31, Year 6.

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Henri Corporation Statement of Stockholders Equity For the Year Ended December 31 Year 6 Common Stoc... View the full answer