Transactions that affected Barter Companys stockholders equity during 2011, the first year of operations, follow. (a) Issued

Question:

Transactions that affected Barter Company’s stockholders’ equity during 2011, the first year of operations, follow.

(a) Issued 30,000 shares of 9% preferred stock, $20 par, at $26.

(b) Issued 50,000 shares of $3 par common stock at $33.

(d) Purchased 6,000 shares of its own common stock at $35.

(e) Reissued 1,000 shares of treasury stock at $37.

No dividends were declared in 2011, and net income for 2011 was $185,000.

Instructions:

1. Record each of the transactions. Assume that treasury stock acquisitions are recorded at cost.

2. Prepare the Stockholders’ Equity section of the balance sheet at December 31, 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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...