80.2K

Verified Solution

Link Copied!

Park Company reported the following in the statement of shareholders' equity at 1/1/17: Common stock, $5 par value, authorized 200,000 shares, 500,000 1,500,000 516,000 $2,516,000 issued 100,000 Additional paid-in capital Retained earnings 40,000 Less: treasury stock, at cost, 5,000 shares Total shareholders' equity $2,476,000 The following events occurred in 2017 3/1 1,000 shares of treasury stock were sold for $10,000 A 30% stock dividend was declared when the market value of the stock was The shares will be distributed on 7/31 to holders of record on 7/1 9,000 of previously unissued common stock sold for $12 per share. A 2-for-1 stock split resulted in the common stock's par value being halved. A cash dividend of $.50 per share was declared Net income for 2017 was $473,500. 675 9/9 10/1 12/15 12/31 Required: (a) Prepare the journal entries required for the 2017 events affecting equity (b) Prepare the equity section of the balance sheet at 12/31/17 Park Company reported the following in the statement of shareholders' equity at 1/1/17: Common stock, $5 par value, authorized 200,000 shares, 500,000 1,500,000 516,000 $2,516,000 issued 100,000 Additional paid-in capital Retained earnings 40,000 Less: treasury stock, at cost, 5,000 shares Total shareholders' equity $2,476,000 The following events occurred in 2017 3/1 1,000 shares of treasury stock were sold for $10,000 A 30% stock dividend was declared when the market value of the stock was The shares will be distributed on 7/31 to holders of record on 7/1 9,000 of previously unissued common stock sold for $12 per share. A 2-for-1 stock split resulted in the common stock's par value being halved. A cash dividend of $.50 per share was declared Net income for 2017 was $473,500. 675 9/9 10/1 12/15 12/31 Required: (a) Prepare the journal entries required for the 2017 events affecting equity (b) Prepare the equity section of the balance sheet at 12/31/17

Answer & Explanation Solved by verified expert

See Answer