The condensed balance sheet of IBC Corporation at December 31, 2002, is shown below.
|
Assets |
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|
Cash. |
$ 400,000 |
|
|
All other assets |
1,042,000 |
|
|
$1,442,000 |
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|
Liabilities and Stockholders |
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Current liabilities . |
$ 164,000 |
|
|
Long term liabilities |
230,000 |
|
|
$ 394,000 |
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Contributed capital: |
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Common stock ($10 par, 100,000 shares authorized, |
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|
80,000 shares outstanding). |
$ 800,000 |
|
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Paid in capital in excess of par, common stock . . |
80,000 |
|
|
Retained earnings |
168,000 |
|
|
$1,048,000 |
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|
$1,442,000 |
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During 2003, the following transactions affected stockholders equity:
Feb. 15 Purchased 2,000 shares of IBC outstanding common stock at $15 per share.
May 21 Sold 1,200 of the shares purchased on February 15 at $19 per share.
Sept. 15 Issued 8,000 shares of previously unissued common stock at $21 per share.
Dec. 21 Sold the remaining 800 shares of treasury stock at $22 per share.
Dec. 31 Closed net income of $85,360 to Retained Earnings. Revenues were $185,360; expenses were $100,000.
Required
1. Prepare the journal entries to record the 2003 transactions.
2. Prepare the stockholders equity section of the balance sheet at December 31, 2003.
3. Prepare a statement of stockholders equity for the year ended December 31, 2003.