Chapter 12, Problem 2R

Chen Corporation began 2012 with the following stockholders’ equity balances:

The following selected transactions and events occurred during the year:

a. Issued 10,000 shares of common stock for $60,000.

b. Purchased 1,200 shares of treasury stock for $4,800.

c. Sold 2,000 shares of treasury stock for $11,000.

d. Generated net income of $94,000.

e. Declared and paid the full year’s dividend on preferred stock and a dividend of $1.00 per share on common stock outstanding at the end of the year.

Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as “Additional paid-in capital” when preparing financial statements.

Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders’ equity balance at 12/31/12 (cell G21). $398,800.