Common stock, par $10, authorized 100,000 shares, issued 10,000 shares $100,000
Capital in excess of par value 50,000
Retained earnings 160,000
During the year, 2011, the accounts showed the following summarized transactions (assume they occurred in the order given):
(1) Issued a 10% stock dividend; 1,000 shares issued when the market price was $12.
(2) Purchased treasury stock (200 shares at $11).
(3) Declared and paid a cash dividend of $19,800.
(4) Net income, $30,000.
Requirement: You must provide all supportive computations in order to receive full credit.
Prepare, in good form, the stockholder’s equity section of Gibbons Corporation for 2011.