Question

On January 1, 2022, Marin Inc. had these stockholders’ equity balances.

Common Stock, $1 par (2,300,000 shares authorized, 675,000 shares issued and outstanding) $675,000 Paid-in Capital in Excess of Par Value 1,430,000 Retained Earnings 688,000 Accumulated Other Comprehensive Income 56,000 During 2022, the following transactions and events occurred.

1. Issued 48,000 shares of $1 par value common stock for $3 per share.

2. Issued 60,500 shares of common stock for cash at $5 per share.

3. Purchased 22,000 shares of common stock for the treasury at $3.05 per share.

4. Declared and paid a cash dividend of $169,500.

5. Earned net income of $396,000.

6. Had other comprehensive income of $17,600.

Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.

Answer 1

Answer
Stockholders’ equity section of the balance sheet at December 31, 2022.
Stockholder's equity
Paid in Capital
Common Stock(675000+48000+60500)	7,83,500
Additional paid in Capital
Paid in Capital in excess of par value-Common Stock	17,68,000
Total paid in Capital	25,51,500
Retained earnings	8,57,500
Total paid in capital and retained earnings	34,09,000
Accumulated other comprehensive income	73,600
Less: Treasury stock(22000*3.05)	-67,100
Total Stockholder's equity	34,15,500
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