Marine obtained a charter from the state in January that authorized 1,000,000 sh

Question

Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $410,000 of net income and the following selected transactions occurred in the order given: (I asked question before and the person didn't get it correct, please help)

Reissued 10,500 shares from treasury for $50 per share.

1) Prepare the stockholders’ equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign. Not all blanks have to be filled)

a. Issued 110,000 shares of the common stock at $56 cash per share. b. Reacquired 26,000 shares at $51 cash per share. c. Reissued 10,500 shares from treasury for $52 per share. d.

Reissued 10,500 shares from treasury for $50 per share.

1) Prepare the stockholders’ equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign. Not all blanks have to be filled)

World MARINE Balance Sheet (Partial) At December 31 Stockholders’ Equity Contributed Capital: ? ? ? ? ? Total Contributed Capital ? ? ? Total ? Less Treasury Stock? Or Add? ? ? Total Stockholders’ Equity ?

Explanation / Answer

Answer:

Note: For 21,000(10,500+10,500) shares reissued inflows and reacuired outflows are same.

World MARINE Balance Sheet (Partial) At December 31 Stockholders’ Equity Contributed Capital: Common Stock, $5 par value, 1,000,000 shares authorized Issued and outstanding 110,000 shares of the common stock at $5 cash per share        550,000.00 Additional paid in capital in excess of par value 110,000 shares of the common stock at $51 cash per share     5,610,000.00 Total Contributed Capital     6,160,000.00 Add: Retained Earnings        410,000.00 Total     6,570,000.00 Less Treasury Stock 5,000 shares of the common stock at $51 cash per share       (255,000.00) Total Stockholders’ Equity     6,315,000.00

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