Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $120,000; Additional Paid-in Capital, $4,000,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2021, is $900,000. Court Casuals has the following transactions affecting stockholders' equity in 2021: May 18 Issues 23,000 additional shares of $1 par value common stock for $40 per share. May 31 Purchases 4,500 shares of treasury stock for $45 per share. July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury stock. July 31 Pays the cash dividend declared on July 1. August 10 Resells 2,250 shares of treasury stock purchased on May 31 for $56 per share. Taking into consideration all the entries described above, prepare the statement of stockholders' equity for the year ended December 31, 2021, using the format provided. (Amounts to be deducted should be indicated with a minus sign.) COURT CASUALS Statement of Stockholders' Equity For the Year Ended December 31, 2021 Additional Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity Paid-in Capital Balance, January 1 120,000 $ 4,000,000 $ 3,000,000 $ 7,120,000 2$ Issue common stock Purchase treasury stock Cash dividends Resell treasury stock Net income Balance, December 31
Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $120,000; Additional Paid-in Capital, $4,000,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2021, is $900,000. Court Casuals has the following transactions affecting stockholders' equity in 2021: May 18 Issues 23,000 additional shares of $1 par value common stock for $40 per share. May 31 Purchases 4,500 shares of treasury stock for $45 per share. July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury stock. July 31 Pays the cash dividend declared on July 1. August 10 Resells 2,250 shares of treasury stock purchased on May 31 for $56 per share. Taking into consideration all the entries described above, prepare the statement of stockholders' equity for the year ended December 31, 2021, using the format provided. (Amounts to be deducted should be indicated with a minus sign.) COURT CASUALS Statement of Stockholders' Equity For the Year Ended December 31, 2021 Additional Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity Paid-in Capital Balance, January 1 120,000 $ 4,000,000 $ 3,000,000 $ 7,120,000 2$ Issue common stock Purchase treasury stock Cash dividends Resell treasury stock Net income Balance, December 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $120,000;
Additional Paid-in Capital, $4,000,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2021, is
$900,000. Court Casuals has the following transactions affecting stockholders' equity in 2021:
May 18 Issues 23,000 additional shares of $1 par value common stock for $40 per share.
May 31 Purchases 4,500 shares of treasury stock for $45 per share.
July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not
45
paid on treasury stock.
July 31 Pays the cash dividend declared on July 1.
August 10 Resells 2,250 shares of treasury stock purchased on May 31 for $56 per share.
Taking into consideration all the entries described above, prepare the statement of stockholders' equity for the year ended December
31, 2021, using the format provided. (Amounts to be deducted should be indicated with a minus sign.)
COURT CASUALS
Statement of Stockholders' Equity
For the Year Ended December 31, 2021
Total
Stockholders'
Additional
Retained
Treasury
Stock
Common
Paid-in
Stock
Earnings
Equity
$ 7,120,000
Capital
Balance, January 1
120,000 $ 4,000,000
$3,000,000
Issue common stock
Purchase treasury stock
Cash dividends
Resell treasury stock
Net income
Balance, December 31
%24
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