Statement of Changes in Stockholders’ Equity
Beginning balances in the equity accounts were as follows:
|
Common stock, at par |
$1,500 |
|
Paid in capital in excess of par |
10,000 |
|
Accumulated other comprehensive income |
(2,200) |
|
Retained earnings |
15,000 |
|
Treasury stock |
(5,000) |
|
Total stockholders’ equity |
$19,300 |
The following is true for the year:
(a) Net income was $4,500.
(b) Equity increased $300 from an increase in value of available for sale securities.
(c) Dividends were $1,000.
(d) Treasury stock of $1,200 was purchased. Assume the cost method.
(e) Shares of stock for $500 were issued. Par value was $40.
Prepare a statement of changes in stockholders’ equity for the year.