Instructions
Prepare the stockholders' equity section of the balance sheet at December 31, 2012.
P11-6B On January 1, 2012, Gabriel Inc. had these stockholder equity balances.
Common Stock, $1 par (1,000,000 shares authorized;
500,000 shares issued and outstanding) $ 500,000
Paid-in Capital in Excess of Par Value 1,000,000
Retained Earnings 600,000
During 2012, the following transactions and events occurred.
1. Issued 70,000 shares of $1 par common stock for $245,000.
2. Issued 40,000 common shares for cash at $4 per share.
3. Purchased 18,000 shares of common stock for the treasury at $4 per share.
4. Declared and paid a cash dividend of $296,000.
5. Reported net income of $510,000.