Exercise 1410 Dirk Company reported the following balances a

Exercise 14-10 Dirk Company reported the following balances at December 31, 2016: common stock $391,000, paid-in capital in excess of par value-common stock $105,000, and retained earnings $254,000. During 2017, the following transactions affected stockholders\' equity. 1. Issued preferred stock with a par value of $128,000 for $202,000. 2. Purchased treasury stock (common) for $42,000. 3. Earned net income of $141,000 4. Declared and paid cash dividends of $55,000 Prepare the stockholders\' equity section of Dirk Company\'s December 31, 2017, balance sheet. DIRK COMPANY Balance Sheet (Partlal)

Solution

Answer:

Dirk Company

Balance Sheet (Partial)

Paid-in capital

Amount $

Amount $

Capital stock

Preferred stock

128000

Common stock

391000

Total capital stock

519000

Additional paid-in capital

In excess of par–preferred stock

74000

In excess of par–common stock

105000

Total additional paid-in capital

179000

Total paid-in capital

698000

Retained earnings
(254000+141000-55000)

340000

Total paid-in capital and retained earnings

1038000

Less treasury stock–common

-42000

Total stockholder\'s equity

996000

Dirk Company
Balance Sheet (Partial)
Paid-in capital	Amount $	Amount $
Capital stock
Preferred stock	128000
Common stock	391000
Total capital stock		519000
Additional paid-in capital
In excess of par–preferred stock	74000
In excess of par–common stock	105000
Total additional paid-in capital		179000
Total paid-in capital		698000
Retained earnings (254000+141000-55000)		340000
Total paid-in capital and retained earnings		1038000
Less treasury stock–common		-42000
Total stockholder\'s equity		996000