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Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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*EXERCISE 11-12

Purpose: (L.O. 8) This exercise will illustrate the preparation of a stockholders' equity statement.

On January 1, 2014, Huseman Corporation had the following stockholders' equity balances:

Common Stock ($1 stated value) $300,000
Paid-in Capital in Excess of Stated Value 710,000
Retained Earnings 390,000
Treasury Stock (3,000 shares) 6,000

During 2014, the following occurred:

  1. Issued 50,000 shares of common stock at $3 per share.
  2. Declared a $70,000 cash dividend.
  3. Purchased 1,000 shares of treasury stock at $2 per share.
  4. Declared and distributed a 5% stock dividend when the market value
  5. was $3 per share and there were 346,000 shares outstanding.
  6. Earned net income for the year of $200,000.

Instructions

Prepare a stockholders' equity statement for the year ending December 31, 2014.

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