View the step-by-step solution to:

On January 1, 2011, the stockholders' equity section of Gibbons Corporation's balance sheet showed the following Common stock, par $10, authorized

On January 1, 2011, the stockholders' equity section of Gibbons Corporation's balance sheet showed the following

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.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question