ex 173 the stockholders 39 equity section of makoto corporation 39 s balance sheet a 4325012

Ex. 173

The stockholders' equity section of Makoto Corporation's balance sheet at December 31, 2016, appears below:

Stockholders' equity

Paid-in capital

Common stock, $10 par value, 400,000 shares authorized;

   250,000 issued and outstanding$2,500,000

Paid-in capital in excess of par  1,200,000

Total paid-in capital3,700,000

Retained earnings     600,000

Total stockholders' equity$4,300,000

During 2017, the following stock transactions occurred:

Jan.18Issued 50,000 shares of common stock at $32 per share.

Aug.20Purchased 25,000 shares of Makoto Corporation's common stock at $26 per share to be held in the treasury.

Nov.5Reissued 9,000 shares of treasury stock for $28 per share.

Instructions

(a)Prepare the journal entries to record the above stock transactions.

(b)Prepare the stockholders' equity section of the balance sheet for Makoto Corporation at December 31, 2017. Assume that net income for the year was $100,000 and that no dividends were declared.

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