Question - Court Casuals has the following beginning balances in its stockholders' equity accounts on January 1, 2015: Common Stock, $110,000; Additional Paid-in Capital, $4,100,000; and Retained Earnings, $1,000,000. Net income for the year ended December 31, 2015, is $700,000. Court Casuals has the following transactions affecting stockholders' equity in 2015:
May18 Issues 30,000 additional shares of $1 par value common stock for $30 per share.
May31 Repurchases 3,000 shares of treasury stock for $40 per share.
July1 Declares a cash dividend of $1 per share to all stockholders of record on July 15.
Hint: Dividends are not paid on treasury stock.
July31 Pays the cash dividend declared on July 1.August10 Reissues 2,750 shares of treasury stock purchased on May 31 for $58 per share.
Taking into consideration all the entries described above, prepare the statement of stockholders' equity for the year ended December 31, 2015, using the format provided. (Amounts to be deducted should be indicated with a minus sign. Increases in treasury stock should be entered with a minus sign since it is a contra account.)