Question

At the end of the prior year annual reporting period, Barnard Corporation's balance sheet showed the following:

BARNARD CORPORATION Balance Sheet At December 31, Prior Year
Stockholders’ equity
Contributed capital
Common stock (par $15; 5,900 shares)	$	88,500
Paid-in capital		12,000
Total contributed capital		100,500
Retained earnings		42,000
Total stockholders’ equity	$	142,500

During the current year, the following selected transactions (summarized) were completed:

1. Sold and issued 1,200 shares of common stock at $24 cash per share (at year-end).
2. Determined net income, $51,000.
3. Declared and paid a cash dividend of $4 per share on the beginning shares outstanding.

Required:

Prepare a statement of stockholders’ equity for the year ended December 31, current year.

Answer 1

Answer

Statement of Stockholder's Equity
for the year ended Dec 31
	Common Stock	Paid in Capital	Total contributed capital	Retained earnings	Total Stockholder's equity
Balance	$88,500	$12,000	$100,500	$42,000	$142,500
Stock issue	$18,000	$10,800	$28,800
Net Income			$0	$51,000
Dividends [5900 x $ 4]			$0	($23,600)
Ending balance	$106,500	$22,800	$129,300	$69,400	$142,500