On January 1, 2022, Wildhorse Inc. had the following stockholders' equity balances. Common Stock (420,000 shares issued) $840,000 Paid-in Capital in Excess of Par-Common Stock 500,000 Common Stock Dividends Distributable 250,000 Retained Earnings 680,000 During 2022, the following transactions and events occurred. 1. Issued 125,000 shares of $2 par value common stock as a result of 15% stock dividend declared on December 15, 2023. 2. Issued 62,500 shares of common stock for cash at $4 per share. 3. Purchased 28,000 shares of common stock for the treasury at $5 per share. 4. Declared and paid a cash dividend of $111,000. 5. Sold 5,000 shares of treasury stock for cash at $5 per share. 6. Earned net income of $420,000.
On January 1, 2022, Wildhorse Inc. had the following stockholders' equity balances. Common Stock (420,000 shares issued) $840,000 Paid-in Capital in Excess of Par-Common Stock 500,000 Common Stock Dividends Distributable 250,000 Retained Earnings 680,000 During 2022, the following transactions and events occurred. 1. Issued 125,000 shares of $2 par value common stock as a result of 15% stock dividend declared on December 15, 2023. 2. Issued 62,500 shares of common stock for cash at $4 per share. 3. Purchased 28,000 shares of common stock for the treasury at $5 per share. 4. Declared and paid a cash dividend of $111,000. 5. Sold 5,000 shares of treasury stock for cash at $5 per share. 6. Earned net income of $420,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a stockholders equity statement for the year
Transcribed Image Text:On January 1, 2022, Wildhorse Inc. had the following stockholders' equity balances.
Common Stock (420,000 shares issued)
$840,000
Paid-in Capital in Excess of Par-Common Stock
500,000
Common Stock Dividends Distributable
250,000
Retained Earnings
680,000
During 2022, the following transactions and events occurred.
1.
Issued 125,000 shares of $2 par value common stock as a result of 15% stock dividend declared on December 15, 2023.
2.
Issued 62,500 shares of common stock for cash at $4 per share.
3.
Purchased 28,000 shares of common stock for the treasury at $5 per share.
4.
Declared and paid a cash dividend of $111,000.
5.
Sold 5,000 shares of treasury stock for cash at $5 per share.
6.
Earned net income of $420,000.
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