The Quick Chips Company, a fast food manufacturer, began operations in January 2004. It issued 500,000 shares of $0.25 par value common stock. The stock sold for $20 per share. There are 600,000 shares authorized. In 2006, the company repurchased 15,000 shares of stock at a cost of $26 per share. Quick Chips’s net income and cash dividend payments have been as follows:
|
Year |
Net Income |
Dividends |
|
2004 |
($100,000) |
$0 |
|
2005 |
250,000 |
75,000 |
|
2006 |
400,000 |
150,000 |
Draft the stockholders’ equity section of Quick Chips’s balance sheet for the years ended December 31, 2005 and 2006.