Financial statement effects of Stockholders’ Equity Transactions
Billabong’s statement of stockholders’ equity on December 31, 2011 is as follows:
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6% cumulative prefe
ed stock, $50 par,10,000 shares authorized; 5,000 shares issued and outstanding
$250,000
Common stock, $2 par, 500,000 share authorized; 245,000 shares issued and outstanding
490,000
Paid-in capital in excess of par - Prefe
ed stock
10,000
Paid-in capital in excess of par - Common stock
1,960,000
Retained earnings
600,000
Total stockholders’ equity
$3,310,000
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The following transactions occu
ed during 2012:
Jan 15 Issued 1,500 shares of prefe
ed stock for $50 per share.
Apr 14 Issued 75,000 shares of common stock for $10 per share. Net proceeds were $710,000
Jul 3 Repurchased 20,000 shares of common stock at $6 per share.
Nov 1 Sold 10,000 shares of treasury stock bought on July 3 for $18 per share.
Nov 26 Split stock of common stock 2-for-1 reducing the par value of the stock
Dec 5 Issue a stock dividend of 100% of the outstanding shares of common share.
Use the financial statement effects template, below, to record these transactions.
Balance Sheet
Income Statement
Transaction
Cash Asset
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Noncash Assets
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Liabil-
ities
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Contrib. Capital
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Earned
Capital
Rev-enues
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Expen-ses
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Net
Income
Jan 15
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Apr 14
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July 3
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Nov 1
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–
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Nov 26
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Dec 5
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