Answer:
United Resources Company
Stockholders' Equity Section of the Balance Sheet at the end of the year:
Authorized share capital:
Common stock, $2 par, 218,000 shares
Issued and Outstanding shares:
Common stock, $2 par, 66,000 shares $172,000
Additional paid-in capital - common stock 642,000
Treasury stock, $2 par, 20,000 shares (40,000)
Retained earnings 494,000
Total equity $1,268,000
Explanation:
a) Data and Analysis:
Authorized share capital:
Common stock, $2 par, 218,000 shares
Net income for the year = $494,000
Transactions:
a. Cash $1,079,000 Common stock $166,000 Additional Paid-in Capital - Common $913,000
83,000 shares of the common stock in an initial public offering for $13 per share.
b. Treasury stock $46,000 Additional Paid-in Capital- Common stock $322,000 Cash $368,000
23,000 shares of the previously issued shares for $16 per share.
c. Cash $57,000 Common stock $6,000 Additional Paid-in Capital - Common stock $51,000
3,000 shares of treasury stock for $19 per share.
