Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year ended December 31, 20Y9, are as follows. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y9. Common Stock Jan. 1 Balance 4,800,000 Apr. 14 Issued 30,000 shares 1,200,000 Dec. 31 Balance 6,000,000 Paid-In Capital in Excess of Par Jan. 1 Balance 960,000 Apr. 14 Issued 30,000 shares 300,000 Dec. 31 Balance 1,260,000 Treasury Stock Aug. 7 Purchased 12,000 shares 552,000 Retained Earnings Mar. 31 Dividend 69,000 Jan. 1 Balance 11,375,000 June 30 Dividend 69,000 Dec. 31 Closing Sept. 30 Dividend 69,000 (net income) 3,780,000 Dec. 31 Dividend 69,000 Dec. 31 Balance 14,879,000 If an amount is zero or an entry is not required, leave the box blank. If there is a net loss or there has been a decrease in stockholders' equity, enter that amount as a negative number using a minus sign. I-Cards Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20Y9 Common Stock, $40 Par Paid-In Capital in Excess of Par Treasury Stock Retained Earnings Total Balances, Jan. 1, 20Y9 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 Issued 30,000 shares of common stock fill in the blank 6 fill in the blank 7 fill in the blank 8 Purchased 12,000 shares as treasury stock fill in the blank 9 fill in the blank 10 Net income fill in the blank 11 fill in the blank 12 Dividends fill in the blank 13 fill in the blank 14 Balances, Dec. 31, 20Y9 $fill in the blank 15 $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 $fill in the blank 19
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Statement of
Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year ended December 31, 20Y9, are as follows. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y9.
Common Stock Jan. 1 Balance 4,800,000 Apr. 14 Issued 30,000 shares 1,200,000 Dec. 31 Balance 6,000,000
Paid-In Capital in Excess of Par Jan. 1 Balance 960,000 Apr. 14 Issued 30,000 shares 300,000 Dec. 31 Balance 1,260,000
Treasury Stock Aug. 7 Purchased 12,000 shares 552,000
Retained Earnings Mar. 31 Dividend 69,000 Jan. 1 Balance 11,375,000 June 30 Dividend 69,000 Dec. 31 Closing Sept. 30 Dividend 69,000 (net income) 3,780,000 Dec. 31 Dividend 69,000 Dec. 31 Balance 14,879,000 If an amount is zero or an entry is not required, leave the box blank. If there is a net loss or there has been a decrease in stockholders' equity, enter that amount as a negative number using a minus sign.
I-Cards Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20Y9 Common Stock, $40 Par Paid-In Capital in Excess of Par Treasury Stock Retained Earnings Total Balances, Jan. 1, 20Y9 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 Issued 30,000 shares of common stock fill in the blank 6 fill in the blank 7 fill in the blank 8 Purchased 12,000 shares as treasury stock fill in the blank 9 fill in the blank 10 Net income fill in the blank 11 fill in the blank 12 Dividends fill in the blank 13 fill in the blank 14 Balances, Dec. 31, 20Y9 $fill in the blank 15 $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 $fill in the blank 19
Treasury Stock : Treasury stock or reacquired stock is a portion of previously issued, outstanding shares of stock which a company has repurchased or bought back from shareholders. It reduces the balance in shareholders equity since, it has debit balance.
Purchase of treasury stock is recorded by debiting treasury stock by the total par value of the shares. Cash account will be credited for the amount paid for purchase of treasury stock. If the sum of credit side of the journal entry is exceed the sum of debit side, the difference will be debited to Paid-in Capital in Excess of par.
In the above question, the par value of a share is $40, but treasury shares are issued at $46 (), so journal entry for the above is as follows
Debit to Treasury Stock (at par $40 per share) $480000
Debit to Paid-in Capital in Excess of par $72000
Credit to Cash Account $552000
2) Dividend: Dividend is a distribution of profit to the shareholders for share held by them. It is just an appropriation of profit and it will be debited to retained earnings
Total amount of dividend debited to retained earnings = = $276000
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