Question

On January 1, 2020, Pharoah Inc. had the following stockholders' equity balances. Common Stock (480,000 shares issued) $960,000 Paid-in Capital in Excess of Par-Common Stock 560,000 Common Stock Dividends Distributable 140,000 Retained Earnings 520,000 During 2020, the following transactions and events occurred. 1. Issued 70,000 shares of $2 par value common stock as a result of 15% stock dividend declared on December 15, 2021. 2. Issued 35,000 shares of common stock for cash at $4 per share. 3. Purchased 21,000 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 $370,000. Prepare a stockholders' equity statement for the year. (If an amount reduces the account balance then enter with negative sign preceding the number e.g.-45 or parentheses e.g. (45).)

Answer 1

	Common Stock	Paid in Capital n Excess of Par - Common Stock	Common Stock Dividend Distributable	Treasury Stock (-)	Retained Earning	Total
Balance Jan-01	$960,000	$560,000	$140,000		$520,000	$2,180,000
Isssued 70000 Share for Stock Dividend	$140,000	$4,000			-$144,000	$0
Issued 35000 Share for cash	$70,000	$70,000				$140,000
Purcahsed 21000 Shares of Treasury Stock				$105,000		-$105,000
Decleared cash Dividend					-$111,000	-$111,000
Sold 8000 Shares of treasury stock				-$40,000		$40,000
Net Income for year					$370,000	$370,000
Balance 31 Dec	$1,170,000	$634,000	$140,000	$65,000	$635,000	$2,514,000