Common products have made its first issue of common stock in 2012. It raised $2 million by selling 20,000 shares of stock to the public. These are the only shares outstanding. The par value of each share was $2. Fill the equity portion of the balance sheet below.
Common shares at par value 2014
Additional paid in capital
Retained earnigs
Net common equity
In 2015 common products had a net income of $60,000. It paid 1/3 of that in dividends. In 2014 it had a net income of $80,000 and paid 1/2 of that in dividends. Show the equity protion of the balance.
Common shares at par value 2013 2014
Additional paid in capital
Retained earnings
Net common equity