United Resources Company obtained a charter from the state in January of this year. The charter authorized 208,000 shares of common stock with a par value of $1. During the year, the company earned $481,000. Also during the year, the following selected transactions occurred in the order given: Sold 86,000 shares of the common stock in an initial public offering for $12 per share. Repurchased 23,000 shares of the previously issued shares for $15 per share and is holding them as treasury stock. Resold 6,000 shares of treasury stock for $18 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: 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 208,000 shares of common stock with a par value of $1. During the year, the company earned $481,000. Also during the year, the following selected transactions occurred in the order given: Sold 86,000 shares of the common stock in an initial public offering for $12 per share. Repurchased 23,000 shares of the previously issued shares for $15 per share and is holding them as treasury stock. Resold 6,000 shares of treasury stock for $18 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated with a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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United Resources Company obtained a charter from the state in January of this year. The charter authorized 208,000 shares of common stock with a par value of $1. During the year, the company earned $481,000. Also during the year, the following selected transactions occurred in the order given:
- Sold 86,000 shares of the common stock in an initial public offering for $12 per share.
- Repurchased 23,000 shares of the previously issued shares for $15 per share and is holding them as
treasury stock . - Resold 6,000 shares of treasury stock for $18 per share.
Required:
Prepare the
Note: Amounts to be deducted should be indicated with a minus sign.
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