A computer virus destroyed important financial information pertaining to Denton Company s stockholders equity section. Your expertise is needed to compute the missing account balances. The only information you can recover from the computer s backup system is as follows:
a. During 2003, 8,000 shares of common stock with a par value of $10 were issued when the market price per share was $22.
b. Cash dividends of $30,000 were paid to preferred shareholders.
c. Denton Company acquired 4,000 shares of common stock at $15 to hold as treasury stock.
d. Denton Company reissued 3,000 shares of treasury stock for $18.
|
December 31, 2002 |
December 31, 2003 |
|
|
Preferred stock |
$ 2,000 |
$ 2,000 |
|
Common stock. |
6,000 |
? |
|
Paid in capital in excess of par, |
||
|
preferred stock |
750 |
750 |
|
Paid in capital in excess of par, |
||
|
common stock. |
1,750 |
? |
|
Paid in capital, treasury stock |
0 |
? |
|
Retained earnings. |
4,500 |
5,250 |
|
Treasury stock |
0 |
(15,000) |
|
Total stockholders equity. . |
15,000 |
? |
Required
1. Calculate the account balances for the following accounts:
a. Common Stock
b. Paid In Capital in Excess of Par, Common Stock
c. Paid In Capital, Treasury Stock
d. Stockholders Equity
2. How much net income did Denton Company report for 2003?