11) Use the information below to answer the following question:
Common stock, $1 par, 100,000 shares
authorized, ________ shares issued$ 50,000
Additional paid-in capital250,000
Retained earnings100,000
Treasury stock (1,000 shares at cost)(4,000)
Total shareholders' equity$396,000
How many shares of common stock are outstanding?
A) 46,000 shares
B) 50,000 shares
C) 1,000 shares
D) 49,000 shares
12) XS, Inc. began business on January 1, 2011. Its corporate charter allows it to sell 100,000 shares of $1 par value common stock. Fill in the missing descriptions in the space provided for the statement of changes in shareholders’ equity.
XS, Inc.
Statement of Changes in Shareholders' Equity
For the Year Ended December 31, 2011
Beginning common stock ($1 par value)$ 0
1. _________________________________$40,000
Additional paid-in capital from common stock issue$ 240,000
Ending contributed capital$280,000
Beginning retained earnings$0
2. _________________________________20,000
3. _________________________________(4,000)
Ending retained earnings$16,000
Beginning treasury stock$ (0)
4. ________________________________(2,000)
Ending treasury stock$ (2,000)
Total shareholders' equity$294,000
13) Marcy’s Catering had the following information in the shareholders’ equity section of its balance sheet at January 1, 2011.
Shareholders’ equity:
|
Common stock, $1 par value, 100,000 shares authorized, 40,000 issued
|
$ 40,000
|
Additional paid-in capital
|
240,000
|
Retained earnings
|
36,000
|
Total shareholders’ equity
|
$316,000
|
|
|
During 2011, the following transactions occurred:
a. The corporation purchased 500 shares of treasury stock on June 15 for $5 per share.
b. The corporation reported $65,000 in net income.
c. A dividend of $0.50 per share was paid on November 15.
Required: Prepare the shareholders’ equity section of the balance sheet at December 31, 2011 for Marcy’s Catering.