Question

On January 1, 2015, Sigma Inc. had these stockholders’ equity balances.

Common Stock, $1 par (3,000,000 shares authorized, 615,000 shares issued and outstanding)		$615,000
Paid-in Capital in Excess of Par Value		1,410,000
Retained Earnings		690,000
Accumulated Other Comprehensive Income		60,000

During 2015, the following transactions and events occurred.

1.		Issued 54,500 shares of $1 par value common stock for $2 per share.
2.		Issued 55,500 shares of common stock for cash at $6 per share.
3.		Purchased 19,600 shares of common stock for the treasury at $3.55 per share.
4.		Declared and paid a cash dividend of $132,000.
5.		Earned net income of $371,500.
6.		Had other comprehensive income of $18,000.

Prepare the stockholders’ equity section of the balance sheet at December 31, 2017.

Answer 1

Sigma Inc.
Balance Sheet (partial)
December 31, 2015
Paid in capital
Contributed capital
Capital stock
Common stock ($1 par value, 3,000,000 shares authorized, 725,000 shares issued and 705,400 shares outstanding)	$      725,000
Paid in capital In excess of par value - Common stock ($1,410,000+($1*54,500)+($5*55,500))	$   1,742,000
Total contributed capital	$   2,467,000
Retained earnings ($690,000+371,500-132,000)	$      929,500
Total contributed capital and retained earnings	$   3,396,500
accumulated other comprehensive income ($60,000+$18,000)	$         78,000
Less: Treasury stock (19,600 common shares)	$       (69,580)
Total stockholders Equity	$   3,404,920