Shareholders' Equity Surinam Company provided the following data pertaining to 2018: Beginning of 2018 data: Common stock-issued: 19,000 shares of $1 par cach, issued many years ago for $5 each. • Treasury stock: 1,000 shares ($1 par), purchased in 2017 for $29,000. • Retained earnings: $810,000. Transactions during 2018: 1. In January, the 1,000 treasury shares were reissued (sold) for $37 cash per share. 2. In March, the company issued 1,000 new shares of $1 par common stock, for $50 cash per share. 3. In June, the company completed a 3-for-2 stock split of its common stock, in the form of stock dividend. Par value of stock was unchanged at $1. Stock price after distribution was $35/share. 4. In December, the company declared and paid a cash dividend of $1/share of common stock. 5. Net income for the year was $70,000. Calculate and write below the 2018 year-end balance in the following accounts. Common stock-Par Additional paid-in capital: Retained earnings: You may use the following worksheet for your work (some are pre-filled for you): Beginning Balance 1. Reissue treasury stock 2. Issue 1,000 new shares 3.3-for-2 stock split 4. Cash dividend 5. Net income Total (ending balance) Common Stock $19,000 Additional Paid-in Capital $76,000 Treasury Stock $29,000 Retained Earnings $810,000
Shareholders' Equity Surinam Company provided the following data pertaining to 2018: Beginning of 2018 data: Common stock-issued: 19,000 shares of $1 par cach, issued many years ago for $5 each. • Treasury stock: 1,000 shares ($1 par), purchased in 2017 for $29,000. • Retained earnings: $810,000. Transactions during 2018: 1. In January, the 1,000 treasury shares were reissued (sold) for $37 cash per share. 2. In March, the company issued 1,000 new shares of $1 par common stock, for $50 cash per share. 3. In June, the company completed a 3-for-2 stock split of its common stock, in the form of stock dividend. Par value of stock was unchanged at $1. Stock price after distribution was $35/share. 4. In December, the company declared and paid a cash dividend of $1/share of common stock. 5. Net income for the year was $70,000. Calculate and write below the 2018 year-end balance in the following accounts. Common stock-Par Additional paid-in capital: Retained earnings: You may use the following worksheet for your work (some are pre-filled for you): Beginning Balance 1. Reissue treasury stock 2. Issue 1,000 new shares 3.3-for-2 stock split 4. Cash dividend 5. Net income Total (ending balance) Common Stock $19,000 Additional Paid-in Capital $76,000 Treasury Stock $29,000 Retained Earnings $810,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Shareholders' Equity
Surinam Company provided the following data pertaining to 2018:
Beginning of 2018 data:
• Common stock-issued: 19,000 shares of $1 par each, issued many years ago for $5 each.
• Treasury stock: 1,000 shares ($1 par), purchased in 2017 for $29,000.
Retained earnings: $810,000.
Transactions during 2018:
1. In January, the 1,000 treasury shares were reissued (sold) for $37 cash per share.
2. In March, the company issued 1,000 new shares of $1 par common stock, for $50 cash
per share.
3.
In June, the company completed a 3-for-2 stock split of its common stock, in the form of
stock dividend. Par value of stock was unchanged at $1. Stock price after distribution was
$35/share.
4. In December, the company declared and paid a cash dividend of $1/share of common
stock.
5. Net income for the year was $70,000.
Calculate and write below the 2018 year-end balance in the following accounts.
Common stock-Par:
Additional paid-in capital:
Retained earnings:
You may use the following worksheet for your work (some are pre-filled for you):
Beginning Balance
1. Reissue treasury stock
2. Issue 1,000 new
shares
3.3-for-2 stock split
4. Cash dividend
5. Net income
Total (ending balance)
Common
Stock
$19,000
Additional
Paid-in Capital
$76,000
Treasury
Stock
$29,000
Retained
Earnings
$810,000
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