Question text
Accounting forShareholders' Equity Transactions
The shareholders' equity section of the balance sheet of TheClaremont Company appeared as follows at the end of the first yearof operations:
| Common stock,$0.08 par value | $480,000 |
| Additionalpaid-in-capital | 71,520,000 |
| Retainedearnings | 25,600,000 |
| Treasurystock | (6,000,000) |
| Shareholders'equity | $91,600,000 |
During the second yearof operations, the following transactions occurred:
- Generated net income of $4.8 million.
- Paid a cash dividend of $1.2 million.
- Purchased 100,000 shares of common stock at $7.6 pershare.
- Executed a 1-for-2 reverse stock split.
Prepare theshareholders' equity section of the balance sheet of ClaremontCompany at the end of the second year of operations.
Use a negative signwith treasury stock answer.
The ClaremontCompany
Stockholders' Equity
December 31, Year 2 |
|---|
| Common stock,par value | $Answer |
| Additionalpaid-in-capital | Answer |
| Retainedearnings | Answer |
| Treasurystock | Answer |
| Totalshareholders' equity | $Answer |
