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United Resources Company obtained a charter from the state in January of this year. The charter authorized 200,000 shares of common stock with a par value of $1. During the year, the company earned $590,000. Also during the year, the following selected transactions occurred in the order given: a. Sold 100,000 shares of the common stock in an initial public offering for $12 per share. b. Repurchased 20,000 shares of the previously issued shares for $15 per share. c. Resold 5,000 shares of treasury stock for $18 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)

United Resources Company obtained a charter from the state in January of this year. The charter authorized 200,000 shares of common stock with a par value of $1. During the year, the company earned $590,000. Also during the year, the following selected transactions occurred in the order given: a. Sold 100,000 shares of the common stock in an initial public offering for $12 per share. b. Repurchased 20,000 shares of the previously issued shares for $15 per share. c. Resold 5,000 shares of treasury stock for $18 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me fill in the blanks. If you can please include what rules/info/formulas I would need to know to solve problems like these in the future.

I am espcially confused with how to calculate the additional paid in capitial and treasurey stock; please let me know if everything else is correct.

UNITED RESOURCES COMPANY Balance Sheet (Partial) At December 31, This year Stockholders' equity: Contributed capital: Common stock Additional paid-in capital Total contributed capital Retained earnings Total contributed capital and retained earnings Treasury stock Total stockholders' equity $ 100,000 590,000 100,000 690,000 $ 690,000
Transcribed Image Text:UNITED RESOURCES COMPANY Balance Sheet (Partial) At December 31, This year Stockholders' equity: Contributed capital: Common stock Additional paid-in capital Total contributed capital Retained earnings Total contributed capital and retained earnings Treasury stock Total stockholders' equity $ 100,000 590,000 100,000 690,000 $ 690,000
United Resources Company obtained a charter from the state in January of this year. The charter authorized 200,000 shares of common stock with a par value of $1. During the year, the company earned $590,000. Also during the year, the following selected transactions occurred in the order given: a. Sold 100,000 shares of the common stock in an initial public offering for $12 per share. b. Repurchased 20,000 shares of the previously issued shares for $15 per share. c. Resold 5,000 shares of treasury stock for $18 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)
Transcribed Image Text:United Resources Company obtained a charter from the state in January of this year. The charter authorized 200,000 shares of common stock with a par value of $1. During the year, the company earned $590,000. Also during the year, the following selected transactions occurred in the order given: a. Sold 100,000 shares of the common stock in an initial public offering for $12 per share. b. Repurchased 20,000 shares of the previously issued shares for $15 per share. c. Resold 5,000 shares of treasury stock for $18 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)
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