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Accounting for Shareholders' Equity Transactions. The shareholders' equity section of the balance sheet of The Colton Company appeared as follows at the end of the first year of operations: $ 800,000 Common stock, $0.10 par value... Additional paid-in-capital Retained earmings... Treasury stock.. Shareholders' equity.. 94,300,000 35,600,000 (7,500,000) $123,200,000 During the second year of operations, the following transactions occurred: 1. Generated net income of $6 million. 2. Paid a cash dividend of $1.5 million. 3. Purchased 100,000 shares of common stock at $9.50 per share. 4. Executed a 1-for-2 reverse stock split. Prepare the shareholders' equity section of the balance sheet of Colton Company at the end of the second year of operations.

Accounting for Shareholders' Equity Transactions. The shareholders' equity section of the balance sheet of The Colton Company appeared as follows at the end of the first year of operations: $ 800,000 Common stock, $0.10 par value... Additional paid-in-capital Retained earmings... Treasury stock.. Shareholders' equity.. 94,300,000 35,600,000 (7,500,000) $123,200,000 During the second year of operations, the following transactions occurred: 1. Generated net income of $6 million. 2. Paid a cash dividend of $1.5 million. 3. Purchased 100,000 shares of common stock at $9.50 per share. 4. Executed a 1-for-2 reverse stock split. Prepare the shareholders' equity section of the balance sheet of Colton Company at the end of the second year of operations.

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 18E: Stockholders' Equity section of balance sheet The following accounts and their balances appear in...
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Prepare the shareholders’ equity section of the balance sheet of Colton Company at the end of the second year of operations

Accounting for Shareholders' Equity Transactions. The shareholders' equity section of the balance sheet of The Colton Company appeared as follows at the end of the first year of operations: Common stock, $0.10 par value... Additional paid-in-capital ... Retained earnings.... Treasury stock ... 800,000 94,300,000 35,600,000 (7,500,000) Shareholders' equity.. $123,200,000 During the second year of operations, the following transactions occurred: 1. Generated net income of $6 million. 2. Paid a cash dividend of $1.5 million. 3. Purchased 100,000 shares of common stock at $9.50 per share. 4. Executed a 1-for-2 reverse stock split. Prepare the shareholders' equity section of the balance sheet of Colton Company at the end of the second year of operations.
Transcribed Image Text:Accounting for Shareholders' Equity Transactions. The shareholders' equity section of the balance sheet of The Colton Company appeared as follows at the end of the first year of operations: Common stock, $0.10 par value... Additional paid-in-capital ... Retained earnings.... Treasury stock ... 800,000 94,300,000 35,600,000 (7,500,000) Shareholders' equity.. $123,200,000 During the second year of operations, the following transactions occurred: 1. Generated net income of $6 million. 2. Paid a cash dividend of $1.5 million. 3. Purchased 100,000 shares of common stock at $9.50 per share. 4. Executed a 1-for-2 reverse stock split. Prepare the shareholders' equity section of the balance sheet of Colton Company at the end of the second year of operations.
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