Statement of stockholders\' equity and classified balance sheet presentation: To

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Statement of stockholders' equity and classified balance sheet presentation: Total stockholders' equity 12/31/2016 1,288,000 Information about the stockholders' equity as of 12/31/16: Common stock PV $2, authorized 400,000; issued 180,000 at an average issue price of 4.75 Accumulated other comprehensive income has a balance of $100,000. The remaining balance in total stockholders' equity is retained earnings. Information about  transactions in 2017: 1.) During 2017, the company issued 10,000 shares for $55,000. 2.) During 2017: sales revenue $800,000, cost of goods sold $500,000, operating expenses $120,000, and an unrealized holding loss on available-for-sale securities for 2017 of $80,000. 3.) During 2017 the compay declared and paid a cash dividend of $10,000 in 2017.   4.)  Tax rate is 20% for 2017. 1,) Prepare the stockholders' equity section of the balance sheet as it would be presented in a classified balance sheet. 2.) Prepare the statement of stockholders' equity. 1,) Stockholders' Equity Preferred Stock Common Stock APIC AOCI Retained Earnings Treasury Stock 2.) Totals Retained earnings Accumulated other comprehensive income Common Stock Additional Paid in capital Beginning Balances Statement of stockholders' equity and classified balance sheet presentation: Total stockholders' equity 12/31/2016 1,288,000 Information about the stockholders' equity as of 12/31/16: Common stock PV $2, authorized 400,000; issued 180,000 at an average issue price of 4.75 Accumulated other comprehensive income has a balance of $100,000. The remaining balance in total stockholders' equity is retained earnings. Information about  transactions in 2017: 1.) During 2017, the company issued 10,000 shares for $55,000. 2.) During 2017: sales revenue $800,000, cost of goods sold $500,000, operating expenses $120,000, and an unrealized holding loss on available-for-sale securities for 2017 of $80,000. 3.) During 2017 the compay declared and paid a cash dividend of $10,000 in 2017.   4.)  Tax rate is 20% for 2017. 1,) Prepare the stockholders' equity section of the balance sheet as it would be presented in a classified balance sheet. 2.) Prepare the statement of stockholders' equity. 1,) Stockholders' Equity Preferred Stock Common Stock APIC AOCI Retained Earnings Treasury Stock 2.) Totals Retained earnings Accumulated other comprehensive income Common Stock Additional Paid in capital Beginning Balances

Explanation / Answer

Partial Balance sheet as at   Dec 31,2017 Stock holders' equity Common stock Authorized 400000 shares of $ 2 par value Issued & outstanding 190000 shares at $ 2 par 380000 APIC-common stock 530000 AOCI 20000 Retained Earnings 467000 Total stockholders' Equity 1397000 APIC-Common stock (180000*2.75)+(10000*3.5) 530000 AOCI Beginning balance 100000 unrealized holding loss on available-for-sale securities for 2017 -80000 Ending balance 20000 Income statement Sales Revenue 800000 Less: COGS 500000 Less: Operating expenses 120000 Before-tax income 180000 Tax at 20% 36000 After-tax income Trf. To retained Earnings 144000 Retained Earnings Opening balance 333000 (1288000-(180000*4.75)-100000= 2017 after-tax income 144000 Less: Cash dividend 10000 Ending bal. in Retained earnings 467000 2. Statement of stockholders' Equity for the year ended Dec 31,2017 Total Retained Earnings Common stock at $2 par APIC AOCI Beginning Balance 1288000 333000 360000 495000 100000 New issue 55000 20000 35000 Unrealised holding loss (AFS) -80000 -80000 Net Income 144000 144000 Cash dividends -10000 -10000 Ending balance 1397000 467000 380000 530000 20000

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