Accounting for Shareholders' Equity Transactions. The shareholders' equity section of the balance sheet of The Colton Company appeared as follows at the end of the first year of operations: $ 800,000 Common stock, $0.10 par value... Additional paid-in-capital Retained earmings... Treasury stock.. Shareholders' equity.. 94,300,000 35,600,000 (7,500,000) $123,200,000 During the second year of operations, the following transactions occurred: 1. Generated net income of $6 million. 2. Paid a cash dividend of $1.5 million. 3. Purchased 100,000 shares of common stock at $9.50 per share. 4. Executed a 1-for-2 reverse stock split. Prepare the shareholders' equity section of the balance sheet of Colton Company at the end of the second year of operations.
Accounting for Shareholders' Equity Transactions. The shareholders' equity section of the balance sheet of The Colton Company appeared as follows at the end of the first year of operations: $ 800,000 Common stock, $0.10 par value... Additional paid-in-capital Retained earmings... Treasury stock.. Shareholders' equity.. 94,300,000 35,600,000 (7,500,000) $123,200,000 During the second year of operations, the following transactions occurred: 1. Generated net income of $6 million. 2. Paid a cash dividend of $1.5 million. 3. Purchased 100,000 shares of common stock at $9.50 per share. 4. Executed a 1-for-2 reverse stock split. Prepare the shareholders' equity section of the balance sheet of Colton Company at the end of the second year of operations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the shareholders’ equity section of the
Transcribed Image Text:Accounting for Shareholders' Equity Transactions. The shareholders' equity section of the balance sheet
of The Colton Company appeared as follows at the end of the first year of operations:
Common stock, $0.10 par value...
Additional paid-in-capital ...
Retained earnings....
Treasury stock ...
800,000
94,300,000
35,600,000
(7,500,000)
Shareholders' equity..
$123,200,000
During the second year of operations, the following transactions occurred:
1. Generated net income of $6 million.
2. Paid a cash dividend of $1.5 million.
3. Purchased 100,000 shares of common stock at $9.50 per share.
4. Executed a 1-for-2 reverse stock split.
Prepare the shareholders' equity section of the balance sheet of Colton Company at the end of the second year
of operations.
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