Chapter 10, Problem 44BE

Accounting for various stockholders' equity transactions (Learning Objective 7) 20-25 min.

At December 31, 2017, Gentili Corp. reported the following stockholders' equity:

Paid-in Capital:
Common Stock, $7 par, 200,000 shares authorized, 120,000 shares issued	$ 840,000
Additional Paid-in Capital—Common	130.000
Total Paid-in Capital	970,000
Retained Earnings	520, D00
Subtotal	1,490,000
Less: Treasury stock, 2,500 shares at cost	(85,000)
Total Stockholders’ Equity	$1,405,000

During 2018, Gentili completed these transactions and events in this order:

1. a. Sold 1,200 shares of treasury stock for $39 per share; the cost of these shares was $34 per share
2. b. Issued 800 shares of common stock at $20 per share
3. c. Net income for the year was $153,000
4. d. Declared and paid cash dividends of $55,000

Requirement

1. 1. Prepare Gentili Corp.'s statement of stockholders’ equity for the year ended December 31, 2018.