This exercise will illustrate the preparation of a stockholders” equity statement.
On January 1, 2014, Huseman Corporation had the following stockholders” equity balances:
|
Common Stock ($1 stated value) |
$300,000 |
|
Paid-in Capital in Excess of Stated Value |
710,000 |
|
Retained Earnings |
390,000 |
|
Treasury Stock (3,000 shares) |
6,000 |
During 2014, the following occurred:
- Issued 50,000 shares of common stock at $3 per share.
- Declared a $70,000 cash dividend.
- Purchased 1,000 shares of treasury stock at $2 per share.
- Declared and distributed a 5% stock dividend when the market value
- was $3 per share and there were 346,000 shares outstanding.
- Earned net income for the year of $200,000.
Instructions
Prepare a stockholders” equity statement for the year ending December 31, 2014.