Feb. 1 The board of directors reduced the par value of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000.
Feb. 11 Purchased 25,000 shares of own stock at $30 re. Jones Comapny uses the cost method for recording treasury stock.
May 1 Declared a dividend of $1 per share on the outstanding shares of common stock.
May 15 Paid the dividend declared on May 1.
Oct. 19 Declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $40).
Nov. 12 Issued the stock certificates for the common stock dividend declared on October 19.
Dec. 31 The board of directors authorized an appropriation of Retained Earnings for the treasury stock purchase. The account Retained Earnings is debited and the RE Appropriation for Treasury Stock is credited.
Dec. 31 During 2008 the company had net income of $2,000,000. The credit balance of Income Summary is closed out.
Prepare a Statement of Stockholders’ Equity (Common Stock, Paid In Capital, & Retained Earnings) for the year.
Stockholders' Equity ?
Paid-in capital: ?
0,000 shares authorized and issued
Paid in capital-Common Stock
Paid in capital from sale of treasury stock
Total paid-in capital
Unappropriated Retained Earnings after dividends
Retained Earnings Appropriation for Treasury Stock
Total
Deduct Treasury Stock at cost
25,000 shares at cost
Total Stockholders' Equity
