Chapter 5, Problem 5.2AP

Preparing a Statement of Stockholders' Equity (P5-4)

At the end of the prior annual reporting period. Mesa Industries's balance sheet showed the following:

MESA INDUSTRIES Balance Sheet At December 31, Prior Year
Stockholders’ Equity
Common stock (par $15, 7,000 shares)	$105,000
Additional paid-in capital	9,000
Retained earnings	48,000
Total stockholders' equity	$162,000

During the current year, the following selected transactions (summarized) were completed:

1. a. Sold and issued 1.500 shares of common stock at S26 cash per share (at year-end).
2. b. Determined net income, $46,000.
3. c. Declared and paid a cash dividend of $1 per share on the beginning shares outstanding.

Required:

Prepare a statement of stockholders’ equity for the year ended December 31. current year. Be sure to show both the dollar amount and number of shares of common stock.