Make the equity section of balance sheet at the end of year

Reference no: EM132809074

Equity presentation

The following information is available about Tulip Corporation.

Balance of accounts at the beginning of the year: Common Stock (2 million shares issued at $5 par): $ 10,000,000
Paid in Capital in Excess of par - Common Stock $14 per share 28,000,000
Preferred Stock (100,000 shares issued at $20 par): 2,000,000
Paid in Capital in Excess of par - Preferred: 100,000 Treasury Stock (22,000 shares @10) 220,000

During the year the following transactions took place:

1. Reacquired and retired 25,000 common shares for $600,000 cash
2. Reissued 10,000 retired shares for $ 26 per share.

Additional information

Preferred shares authorized 300,000 shares
Authorized 10,000,000 common shares.
Retained Earnings at the beginning of the year was $1,790,000.
Net income for the year was $400,000 of which 75% was paid in dividends.

Required:

Problem 1: Use all the information given above to prepare the Equity section of Balance Sheet at the end of the year.

Reference no: EM132809074

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