Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Chapter 12, Problem 1R
Chen Corporation began 2012 with the following stockholders’ equity balances:
The following selected transactions and events occurred during the year:
- a. Issued 10,000 shares of common stock for $60,000.
- b. Purchased 1,200 shares of
treasury stock for $4,800. - c. Sold 2,000 shares of treasury stock for $11,000.
- d. Generated net income of $94,000.
- e. Declared and paid the full year’s dividend on
preferred stock and a dividend of $1.00 per share on common stock outstanding at the end of the year.
Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as “Additional paid-in capital” when preparing financial statements.
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