Black Enterprises reported the following ($ in 000s) as of December 31, 2009. All accounts have normal balances.
Common stock $2,000
Paid-in capital-stock options $1,000
Treasury stock at cost $400
Paid-in capital-excess of par $30,000
During 2010 ($ in 000s), net income was $9,000; 25% of the treasury stock was resold for $450; cash dividends declared were $600; cash dividends paid were $500; and all of the stock options expired.
16. (1) What ($ in 000s) was shareholders' equity as of December 31, 2010?
All the account balances given are part of the total shareholders' equity. For the response to the question, they are grouped together with explanations as needed.
The opening balances are: - 3000 ...
The solution defines each of the amounts with its normal balance within shareholder equity. Explanations are provided for each change based on current year data. The ending balance of total shareholders' equity at 12-31-2010 is calculated.