Exercise 14-10 Dirk Company reported the following balances at December 31, 2016
ID: 2604069 • Letter: E
Question
Exercise 14-10 Dirk Company reported the following balances at December 31, 2016: common stock $391,000, paid-in capital in excess of par value-common stock $105,000, and retained earnings $254,000. During 2017, the following transactions affected stockholders' equity. 1. Issued preferred stock with a par value of $128,000 for $202,000. 2. Purchased treasury stock (common) for $42,000. 3. Earned net income of $141,000 4. Declared and paid cash dividends of $55,000 Prepare the stockholders' equity section of Dirk Company's December 31, 2017, balance sheet. DIRK COMPANY Balance Sheet (Partlal)Explanation / Answer
Answer:
Dirk Company
Balance Sheet (Partial)
Paid-in capital
Amount $
Amount $
Capital stock
Preferred stock
128000
Common stock
391000
Total capital stock
519000
Additional paid-in capital
In excess of par–preferred stock
74000
In excess of par–common stock
105000
Total additional paid-in capital
179000
Total paid-in capital
698000
Retained earnings
(254000+141000-55000)
340000
Total paid-in capital and retained earnings
1038000
Less treasury stock–common
-42000
Total stockholder's equity
996000
Dirk Company
Balance Sheet (Partial)
Paid-in capital
Amount $
Amount $
Capital stock
Preferred stock
128000
Common stock
391000
Total capital stock
519000
Additional paid-in capital
In excess of par–preferred stock
74000
In excess of par–common stock
105000
Total additional paid-in capital
179000
Total paid-in capital
698000
Retained earnings
(254000+141000-55000)
340000
Total paid-in capital and retained earnings
1038000
Less treasury stock–common
-42000
Total stockholder's equity
996000
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