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; 6,800 shares) Paid-in capital Total contributed capital Retained earnings Total stockholders' equity $102,000 18,000 120,000 42,000 $162,000 During the current year, the following selected transactions (summarized) were completed: a. Sold and issued 1,700 shares of common stock at $20 cash per share (at year-end). b. Determined net income, $48,000. c. Declared and paid a cash dividend of $1 per share on the beginning shares outstanding. Required: Prepare a statement of stockholders' equity for the year ended December 31, current year.
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; 6,800 shares) Paid-in capital Total contributed capital Retained earnings Total stockholders' equity $102,000 18,000 120,000 42,000 $162,000 During the current year, the following selected transactions (summarized) were completed: a. Sold and issued 1,700 shares of common stock at $20 cash per share (at year-end). b. Determined net income, $48,000. c. Declared and paid a cash dividend of $1 per share on the beginning shares outstanding. Required: Prepare a statement of stockholders' equity for the year ended December 31, current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
Prepare a statement of stockholders' equity for the year ended December 31, current year.
Balances as of December 31, prior year
Add: Net income
Less: Dividends declared
Stock issued
Balances as of December 31, current year
BARNARD CORPORATION
Statement of Stockholders' Equity
Common Stock
Shares
6,800 $
1,700
8,500 $
Amount
102,000 $
34,000
136,000
Paid-in
Capital
18,000 $
Retained
Earnings
$
Total
Stockholders'
Equity
42,000 $
48,000
6,800
83,200
162,000
48,000
6,800
Transcribed Image Text: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; 6,800 shares)
Paid-in capital
Total contributed capital
Retained earnings
Total stockholders' equity
$102,000
18,000
120,000
42,000
$162,000
During the current year, the following selected transactions (summarized) were completed:
a. Sold and issued 1,700 shares of common stock at $20 cash per share (at year-end).
b. Determined net income, $48,000.
c. Declared and paid a cash dividend of $1 per share on the beginning shares outstanding.
Required:
Prepare a statement of stockholders' equity for the year ended December 31, current year.
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