Tortola Company reported the following balances at December 31 2016: common stock $500000; paid-in capital in excess of par value $100000; retained earnings $250000. During 2017 the following transactions affected stockholders' equity.
1. Issued preferred stock with a par value of $150000 for $200000.
2. Purchased treasury stock (common) for $40000.
3. Earned net income of $140000.
4. Declared and paid cash dividends of $75000.
Instructions
Prepare the stockholders' equity section of Tortola Company's December 31 2017 balance sheet.

Question

Quizplus · Accepted Answer

The Answer of Tortola Company reported the following balances at December 31 2016: common stock $500000; paid-in capital in excess of par value $100000; retained earnings $250000. During 2017 the following transactions affected stockholders' equity.
1. Issued preferred stock with a par value of $150000 for $200000.
2. Purchased treasury stock (common) for $40000.
3. Earned net income of $140000.
4. Declared and paid cash dividends of $75000.
Instructions
Prepare the stockholders' equity section of Tortola Company's December 31 2017 balance sheet.

Tortola Company Reported the Following Balances at December 31 2016