You are on page 1of 1

Chapter 11 Stockholders’ Equity ( Practice )

On January 1, 2000, the accounts of X Corporation showed the following :


Common Stock, par $ 2, authorized 100,000 shares $ 50,000
Additional Paid In capital 100,000
Retained Earnings 20,000

Net Income for 2000 was $ 15,000

During 2000, the following transactions affecting stockholders’equity occurred in the order given :
i. issued a 10 % stock dividend. Market value of the stock on that day was $ 12 /share
ii. purchased treasury shares, 500 shares for $ 5,000 @ $ 10 /share
iii. resold 400 shares of the treasury shares purchased earlier at $ 15/share

A. Prepare journal entries for (i) to (iv) in the space provided below :

i. Retained earnings
Common Stock @ par
APIC, Common Stock
ii.
Treasury Stock
Cash
iii.
Cash
Treasury Stock
APIC, Treasury Stock

B. Complete the blanks for the Stockholders’Equity section of Y Company’s balance sheet @ 12/31/00

Common Stock, par $ __ , authorized shares 100,000, shares issued ________


shares outstanding, ________ $ ________( # sh issued x par )
Additional paid-in capital, common stock $ _______
Additional paid-in capital, treasury stock $ _________
Total Paid In Capital $ _________

Retained Earnings $ __________


Treasury Stock, shares ____ ( __________ )
Total Stockholders’Equity $
============