Great adventures has net income of 150000 in 2014 retained

Assignment Help Accounting Basics

Reference no: EM13577929

Tony and Suzie purchased land costing $500,000 for a new camp in January 2014. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common.

When the company began on July 1, 2012, Tony and Suzie each purchased 10,000 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during 2014, its third year of operations:

Jul.

Issue an additional 100,000 shares of common stock for $12 per share.

Sep.

Repurchase 10,000 shares of its own common stock (i.e., treasury stock) for $15 per share.

Nov.

Reissue 5,000 shares of treasury stock at $16 per share.

Dec.

Declare a cash dividend on its common stock of $115,000 ($1 per share) to all stockholders of record on December 15. The dividend is payable on December 31.

For Part 1 I got:

Date	General Journal	Debit	Credit
Jul 02	Cash	1,200,000
	Common stock		100,000
	Additional paid-in capital		1,100,000

Sep 10	Treasury stock	150,000
	Cash		150,000

Nov 15	Cash	80,000
	Treasury stock		75,000
	Additional paid-in capital		5,000

Dec 01	Dividends	115,000
	Dividends payable		115,000

Dec 31	Dividends payable	115,000
	Cash		115,000

Im struggling with part 2:

Great Adventures Problem 10-1 Part 2

Great Adventures has net income of $150,000 in 2014. Retained earnings at the beginning of 2014 was $140,000. Prepare the stockholders' equity section of the balance sheet for Great Adventures as of December 31, 2014.

Stockholders' Equity:

Common Stock:

Additiobal Paid-In Capital:

Total Paid-In Capital:

Retained Earnings:

Treasury Stock:

Total Stockholders' Equity:

Reference no: EM13577929

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