1 United Resources Company obtained a charter from the state in January of this year....
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1 United Resources Company obtained a charter from the state in January of this year. The charter authorized 203,000 shares of common stock with a par value of $1. During the year, the company earned $491,000 Also during the year, the following selected transactions occurred in the order given: a. Sold 86,000 shares of the common stock in an initial public offering for $17 per share. b. Repurchased 24,000 shares of the previously issued shares for $20 per share. C. Resold 9,000 shares of treasury stock for $23 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. UNITED RESOURCES COMPANY Balance Sheet (Partial) At December 31, This year Stockholders' equity: Contributed capital: Additional paid-in capital 1,367,000 86,000 Common stock Total contributed capital 1,453,000 Retained earnings 491,000 1,944,000 Total contributed capital and retained earnings Treasury stock o 300,000 X Total stockholders' equity 2,244,000
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