Court Casuals has the following beginning balances in its st

Court Casuals has the following beginning balances in its stockholders\' equity accounts on January 1, 2018: Common Stock, $100,000; Additional Paid-in Capital, $3,800,000; and Retained Earnings, $2,000,000. Net income for the year ended December 31, 2018, is $900,000. Court Casuals has the following transactions affecting stockholders\' equity in 2018: May 18 Issues 29,000 additional shares of $1 par value common stock for $40 per share. May 31 Repurchases 5,000 shares of treasury stock for $40 per share. July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury stock. July 31 Pays the cash dividend declared on July 1. August 10 Reissues 1,500 shares of treasury stock purchased on May 31 for $54 per share. Taking into consideration all the entries described above, prepare the statement of stockholders\' equity for the year ended December 31, 2018, using the format provided. (Amounts to be deducted should be indicated with a minus sign. Increases in treasury stock should be entered with a minus sign since it is a contra account. )

Court Casuals has the following beginning balances in its stockholders\' equity accounts on Casuals has the following transactions affecting stockholders\' equity in 2018 May 31 Repurchases 5,000 shares of treasury stock for $40 per share Dividends are not paid on treasury stock. 6 July 31 Pays the cash dividend declared on July 1 Taking into consideration all the entries described above, prepare the statement of stockholders\' 9 entered with a minus sign since it is a contra account.) Statement of Stockholders\' Equity For the Year Ended December 31, 2018 Treasury Stockholders 9 Balance, January 1

Solution

Statement of stockholder\'s equity :

	Common Stock	Additional paid in capital	Retained earnings	Treasury stock	Total stockholder\'s equity
Balance, January 1	100000	3800000	2000000		5900000
Issue common stock	29000	1131000			1160000
Repurchase of treasury stock				-200000	-200000
Cash dividends			-248000		-248000
Sale of treasury stock		21000		60000	81000
Net income			900000		900000
Balance, December 31	129000	4952000	2652000	-140000	7593000