The stockholders%u2019 equity accounts of Ashley Corporation on January 1, 2012,

Question

The stockholders%u2019 equity accounts of Ashley Corporation on January 1, 2012, were as follows.

During 2012, the corporation had the following transactions and events pertaining to its stockholders%u2019 equity.

Preferred Stock (8%, $49 par, cumulative, 10,300 shares authorized) $  377,300 Common Stock ($1 stated value, 2,083,500 shares authorized) 1,345,400 Paid-in Capital in Excess of Par%u2014Preferred Stock 102,600 Paid-in Capital in Excess of Stated Value%u2014Common Stock 1,435,300 Retained Earnings 1,780,500 Treasury Stock (10,800 common shares) 43,200

Explanation / Answer

Feb. 1 Issued 24,600 shares of common stock for $121,900

1Feb Cash Dr 121,900

Paid in cap in excess-common stock Cr 97300

Common Stock ($1par) Cr 24,600

Apr. 14 Sold 5700 shares of treasury stock-common for $32,700

Total Trasiruy share 10800 for $43200

So per share = 43200/10800= $4

14 Apr Cash Dr 32700

Common Treasury Stock($1par) Cr 22800

Paid in capital in from sale of treasury stock 9900

Sept. 3 Issued 4700 shares of common stock for a patent valued at $34400

3 Sep Patent Dr 34400

Paid in capital in excess -common stock Cr 29700

Common Stock$1par) Cr 4700

Nov. 10 Purchased 1,100 shares of common stock for the treasury at a cost of $5900

10Nov Treasury Stock Dr 5900

Cash Cr 5900

Dec. 31 Determined that net income for the year was $401300

31Dec Income Summary Dr 401300

Retained Earnings Cr 401300

b)Stockholders' Equity section of the balance sheet.

Preferred stock

(8%,$49 par,cumulative,10,300 shares Auth $ 377,300

Common stock

($1 stated value, 2,083,500 shares authorized

(1345400+ 24600+4700-1100 issued) $1,373,600

Paid in capital in excess of par-preferred stock . . . . . . . . . . . . . . . . .102,600

Paid in capital in excess of stated value-common stock (1435300+97300+29700) $1,562,300

Paid in capital in from sale of treasury stock $9900

Retained earnings 1780,500

Add: Retaiend eraning for year 401,300

Less:

Treasury stock (10800-5700+1100=6200) $26,300

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Total Stockholders' Equity $5,581,200

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