Problem 8-26 Treasury stock transactions and appropriation of retained earnings Choctaw Co. completed the following transactions in 2018, the first year of operation: 1. Issued 20,000 shares of $10 par common stock for $10 per share. 2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 1,000 shares of common stock as treasury stock for $12 per share. 4. Declared a $2,000 cash dividend on preferred stock. 5. Sold 500 shares of treasury stock for $14 per share. 6. Paid $2,000 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000. 8. Appropriated $8,000 of retained earnings. Required Prepare the stockholders' equity section of the balance sheet as of December 31, 2018.
Problem 8-26 Treasury stock transactions and appropriation of retained earnings Choctaw Co. completed the following transactions in 2018, the first year of operation: 1. Issued 20,000 shares of $10 par common stock for $10 per share. 2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 1,000 shares of common stock as treasury stock for $12 per share. 4. Declared a $2,000 cash dividend on preferred stock. 5. Sold 500 shares of treasury stock for $14 per share. 6. Paid $2,000 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000. 8. Appropriated $8,000 of retained earnings. Required Prepare the stockholders' equity section of the balance sheet as of December 31, 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 8-26 Treasury stock transactions and appropriation of retained earnings
Choctaw Co. completed the following transactions in 2018, the first year of operation:
1. Issued 20,000 shares of $10 par common stock for $10 per share.
2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share.
3. Purchased 1,000 shares of common stock as treasury stock for $12 per
share.
4. Declared a $2,000 cash dividend on preferred stock.
5. Sold 500 shares of treasury stock for $14 per share.
6. Paid $2,000 cash for the preferred dividend declared in Event 4.
7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000.
8. Appropriated $8,000 of retained earnings.
Required
Prepare the stockholders' equity section of the balance sheet as of December 31,
2018.
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