On January 1, 2011, Hamblin Inc. had the following stockholders’ equity balances.
|
Common Stock (500,000 shares issued) |
$1,000,000 |
|
Paid in Capital in Excess of Par Value |
500,000 |
|
Common Stock Dividends Distributable |
100,000 |
|
Retained Earnings |
600,000 |
During 2011, the following transactions and events occurred.
1. Issued 50,000 shares of $2 par value common stock as a result of 10% stock dividend declared on December 15, 2010.
2. Issued 30,000 shares of common stock for cash at $5 per share.
3. Purchased 25,000 shares of common stock for the treasury at $6 per share.
4. Declared and paid a cash dividend of $111,000.
5. Sold 8,000 shares of treasury stock for cash at $6 per share.
6. Earned net income of $360,000.
Instructions
Prepare a stockholders’ equity statement for the year.