Create the stockholders equity section of the balance sheet

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Reference no: EM131455391

Case

Thomson Corporation
Stockholder's Equity
December 31, 2013

Common stock (40,000 authorized, 25,000 issued and

 

outstanding with par value of $10 per share.)

$ 250,000.00

Excess paid in capital on common stock

$ 125,000.00

Retained Earnings

$ 500,000.00

Total stockholder's equity

$ 875,000.00

During the current year, Thomson had the following stock transactions:

• The company authorizes the sale of 10% preferred stock, 50,000 shares at par value of $50.
• Sold 20,000 shares of preferred stock at $75 per share.
• Purchased 5,000 shares of common stock at $20 per share for cash.
• Declared and distributed a 2% stock dividend to common stockholders when market price was $25 per share.
• Declared and paid $90,000 in cash dividends to common and preferred stockholders.
• Sold 2,000 shares of treasury stock at $16 per share.
• Net loss is $134,000.

Required:

Prepare the stockholder's equity section of the balance sheet for year-end 2013.

Reference no: EM131455391

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