On January 1, 2014, the stockholders' equity section of Gibbons Corporation's balance sheet reported the following: $$\begin{array}{l}
\text { Common stock, par } \$ 10 \text {, authorized } 100,000 \text { shares, }\
\text { issued 10,000 shares } & \$ 100,000 \
\text { Capital in excess of par } & 50,000 \
\text { Retained earnings } & 160,000
\end{array}$$ During 2014, the following selected transactions occurred (assume they occurred in the order given): April 1 $\quad$Issued a $10 \%$ stock dividend when the market price was $\$ 12$.
May 1$\quad$200 shares of treasury stock were purchased at $\$ 11$ per share.
Sept. 1 $\quad$Declared and paid a cash dividend of $\$ 19,800$.
Dec. 31 $\quad$Net income was $\$ 30,000$. Required:
Prepare the stockholders' equity section of the balance sheet as of December 31, 2014.

Question

On January 1, 2014, the stockholders' equity section of Gibbons Corporation's balance sheet reported the following: $$\begin{array}{l}
\text { Common stock, par } \$ 10 \text {, authorized } 100,000 \text { shares, }\
\text { issued 10,000 shares } & \$ 100,000 \
\text { Capital in excess of par } & 50,000 \
\text { Retained earnings } & 160,000
\end{array}$$ During 2014, the following selected transactions occurred (assume they occurred in the order given): April 1 $\quad$Issued a $10 \%$ stock dividend when the market price was $\$ 12$. 
May 1$\quad$200 shares of treasury stock were purchased at $\$ 11$ per share. 
Sept. 1 $\quad$Declared and paid a cash dividend of $\$ 19,800$.
Dec. 31 $\quad$Net income was $\$ 30,000$. Required:
Prepare the stockholders' equity section of the balance sheet as of December 31, 2014.

Quizplus · Accepted Answer

The Answer of On January 1, 2014, the stockholders' equity section of Gibbons Corporation's balance sheet reported the following: $$\begin{array}{l}
\text { Common stock, par } \$ 10 \text {, authorized } 100,000 \text { shares, }\
\text { issued 10,000 shares } & \$ 100,000 \
\text { Capital in excess of par } & 50,000 \
\text { Retained earnings } & 160,000
\end{array}$$ During 2014, the following selected transactions occurred (assume they occurred in the order given): April 1 $\quad$Issued a $10 \%$ stock dividend when the market price was $\$ 12$. 
May 1$\quad$200 shares of treasury stock were purchased at $\$ 11$ per share. 
Sept. 1 $\quad$Declared and paid a cash dividend of $\$ 19,800$.
Dec. 31 $\quad$Net income was $\$ 30,000$. Required:
Prepare the stockholders' equity section of the balance sheet as of December 31, 2014.

On January 1, 2014, the Stockholders' Equity Section of Gibbons