Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $4,200,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2021, is $700,000. Court Casuals has the following transactions affecting stockholders' equity in 2021: May 18 Issues 30,000 additional shares of $1 par value common stock for $40 per share. May 31 Purchases 3,000 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 1,750 shares of treasury stock purchased on May 31 for $51 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 min COURT CASUALS Statement of Stockholders' Equity For the Year Ended December 31, 2021 Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity Balance, January 1 $100,000 $4,200,000 $3,000,000 $7,300,000 Issue common stock Purchase treasury stock Cash dividends Resell treasury stock Net income Balance, December 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $4,200,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2021, is $700,000. Court Casuals has the following transactions affecting stockholders' equity in 2021:

May	18	Issues 30,000 additional shares of $1 par value common stock for $40 per share.
May	31	Purchases 3,000 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 1,750 shares of treasury stock purchased on May 31 for $51 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 min

COURT CASUALS
Statement of Stockholders' Equity
For the Year Ended December 31, 2021
	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Total Stockholders' Equity
Balance, January 1	$100,000	$4,200,000	$3,000,000		$7,300,000
Issue common stock
Purchase treasury stock
Cash dividends
Resell treasury stock
Net income
Balance, December 31

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions