The following balances are taken from Henri Corporation's balance sheet as of 12317Tea 2e Stockholders' Equity Common stock, $1 par (20,000 shares) Additional paid-in-capital- common stock Retained earnings Accumulated other comprehensive income Total stockholders' equity 20,000 325,000 980,000 100,000 1,425,000 Henri reported the following income items and transactions with owners during year 6: n March of the current year, the company issued 5,000 shares of $1 par value common stock for $30 per share. • The company declared $5,000 of dividends on December 31st to be paid the following January. • Unrealized losses on available for sale debt securities totaled $15,000 (net of tax). In addition, consider the following: • At the beginning of Year 6, the company changed the cost flow assumption used for valuing inventory. The company now uses the FIFO method rather than the LIFO method to value inventory. The cumulative effect on net income of making this change, for all years prior to Year 6, resulted in an increase of $95,000. Year 6 net income was calculated using the new principle. • It was discovered during the year that the company failed to record sales revenue of $75,000 in Year 2. The tax rate for Year 2 was 40%. Based on the information presented above, prepare a statement of stockholders' equity for Henri Corn for th anded December 31 Year 6
The following balances are taken from Henri Corporation's balance sheet as of 12317Tea 2e Stockholders' Equity Common stock, $1 par (20,000 shares) Additional paid-in-capital- common stock Retained earnings Accumulated other comprehensive income Total stockholders' equity 20,000 325,000 980,000 100,000 1,425,000 Henri reported the following income items and transactions with owners during year 6: n March of the current year, the company issued 5,000 shares of $1 par value common stock for $30 per share. • The company declared $5,000 of dividends on December 31st to be paid the following January. • Unrealized losses on available for sale debt securities totaled $15,000 (net of tax). In addition, consider the following: • At the beginning of Year 6, the company changed the cost flow assumption used for valuing inventory. The company now uses the FIFO method rather than the LIFO method to value inventory. The cumulative effect on net income of making this change, for all years prior to Year 6, resulted in an increase of $95,000. Year 6 net income was calculated using the new principle. • It was discovered during the year that the company failed to record sales revenue of $75,000 in Year 2. The tax rate for Year 2 was 40%. Based on the information presented above, prepare a statement of stockholders' equity for Henri Corn for th anded December 31 Year 6
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter16: Financial Statements And Closing Entries For A Corporation
Section16.2: Preparing A Statement Of Stockholders’ Equity
Problem 1WT
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Transcribed Image Text:Statement of Stockholders' Equity Example:
The following balances are taken from Henri Corporation's balance sheet as of 12/31/Year S.
Stockholders' Equity
Common stock, $I par (20,000 shares)
Additional paid-in-capital- common stock
Retained earnings
Accumulated other comprehensive income
Total stockholders' equity
20,000
325,000
980,000
100,000
1,425,000
Henri reported the following income items and transactions with owners during year 6:
* In March of the current year, the company issued 5,000 shares of $1 par value common stock
for $30 per share.
• The company declared $5,000 of dividends on December 31st to be paid the following
January.
• Unrealized losses on available for sale debt securities totaled $15,000 (net of tax).
In addition, consider the following:
At the beginning of Year 6, the company changed the cost flow assumption used for valuing
inventory. The company now uses the FIFO method rather than the LIFO method to value
inventory. The cumulative effect on net income of making this change, for all years prior to
Year 6, resulted in an increase of $95,000. Year 6 net income was calculated using the new
principle.
• It was discovered during the year that the company failed to record sales revenue of $75,000
in Year 2. The tax rate for Year 2 was 40%.
Based on the information presented above, prepare a statement of stockholders' equity for Henri
Corp. for the year ended December 31, Year 6.
Transcribed Image Text:Henri Corporation
Statement of Stockholders' Equity
For the year ended December 31, Year 6
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