The balance sheet of Entertainment, Inc., at December 31, 2015, reported 400,000 shares of $1 par common stock authorized with 110,000 shares issued and outstanding. Paid-in capital in excess of par-common had a balance of $305,000. Retained
earnings had a balance of $108,000. During 2016, the company completed the following selected transactions
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Requirements
1.
2.
Record the transactions in the journal. Explanations are not required.
Prepare the stockholders' equity section of the balance sheet at December 31, 2016, assuming the company earned $74,000 of net income during the year.
Paid-in capital in excess or par-common
04.200
Requirement 2. Prepare the stockholders' equity section of the balance sheet at December 31, 2016, assuming the company earned $74,000 of net income during the year. (Enter the accounts in the proper order for the stockholders' equity section of the
balance sheet)
Paid-in capital
Common stock, $1 par
shares issued
Paid in capital in excess of par-common
Paid-in capital from treasury stock
Total paid-in capital
Retained earnings
Less. Treasury stock
Total stockholders' equity
Stockholders' Equity
400,000 shares authorized,
shares outstanding
shares at cost