See attached Excel file for full problem.
On January 1, 2007, Rothchild Inc. had these stockholders' equity balances.
Common Stock, $1 par (2,000,000 shares authorized,
800,000 shares issued and outstanding) $800,000
Paid-in Capital in Excess of Par Value 1,500,000
Retained Earnings 600,000
During 2007, the following transactions and events occurred.
1. Issued 50,000 shares of $1 par value common stock for $3 per share.
2. Issued 40,000 shares of common stock for cash at $4 per share.
3. Purchased 15,000 shares of common stock for the treasury at $3.50 per share.
4. Declared and paid a cash dividend of $115,000
5. Earned net income of $300,000
Prepare the stockholders' equity section of the balance sheet at December 31, 2007.
The solution explains how to prepare the Stockholders' Equity section of the balance sheet.