Question

On January 1, 2020, Oriole Inc. had the following stockholders' equity balances. Common Stock (595,000 shares issued) Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings $1,190,000 530,000 210,000 640,000 During 2020, the following transactions and events occurred. 1. 2. 3. 4. 5. 6. Issued 105,000 shares of $2 par value common stock as a result of 15% stock dividend declared on December 15, 2021. Issued 52,500 shares of common stock for cash at $4 per share. Purchased 30,000 shares of common stock for the treasury at $5 per share. Declared and paid a cash dividend of $112,000. Sold 5,000 shares of treasury stock for cash at $5 per share. Earned net income of $380,000. 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).) Oriole Inc. Stockholders' Equity Statement Paid-in Capital in Common Excess of Stock Par- Dividends Common Stock Distributable Common Stock Treasury Stock Retained Earnings Total Balances, Jan. 1 Issued 105,000 share for stock dividend Issued 52,500 shares for cash Purchased 30,000 shares of treasury stock Declared cash dividend Sold 5,000 shares of treasury stock Net income for year Balances, Dec. 31 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Oriole Inc. Stockholders' Equity statement For the Year Ending December 31, 2020 Treasury stock Retained Earnings Total $ $ 640,000 $2,570,000 Paid-in Capital Common Common in Excess of stock Stock Par- Common Dividends Stock Distributable Balances, Jan. 1 $1,190,000 S 530.000 $ 210,000 Issued 105,000 share for stock dividend $ 210.000 $ $ (210,000) Issued 52,500 shares for cash $ 105,000 $ 105,000S Purchased 30,000 shares of treasury stocks Declared cash dividend - $ Sold 5,000 shares of treasury stock - S Net Income for year Balances, Dec. 31 $1,505,000 S 635,000 S - S $ (150.000) $ $ 25,000 S $ $ (125,000) S $ 210.000 $ (150.000) (112,000) S (112,000) - $ 25,000 380,000380,000 908,000 $2,923,000 Working Notes: **Common stock share price = $1,190,000/595.000 = $2