This appendix provides an illustration of the various financial statements that may be required to be presented and are related to the stockholders' equity section of the balance sheet.
Stockholders' Equity Section of a Balance Sheet | ||
---|---|---|
Capital stock: | ||
| $ 3,000,000 | |
| 4,150,000 | |
| $ 7,150,000 | |
Additional paid-in capital: | ||
| $ 150,000 | |
| 845,000 | 995,000 |
| $ 8,145,000 | |
Donated capital | 100,000 | |
Retained earnings: | ||
| $2,100,000 | |
| 2,275,000 | 4,375,000 |
| $12,620,000 | |
Less 10,000 common shares held in treasury, at cost | (120,000) | |
Total stockholders' equity | $12,500,000 |
Retained Earnings Statement | |
---|---|
Balance at beginning of year, as reported | $ 3,800,000 |
Prior period adjustment—correction of an error in method of depreciation (less tax effect of $77,000) | 115,000 |
Balance at beginning of year, restated | $ 3,915,000 |
Net income for the year | 748,000 |
Cash dividends declared during the year | |
| (210,000) |
| (78,000) |
Balance at end of year | $ 4,375,000 |
Preferred stock | Common stock | Additional paid-in capital | Donated capital | Retained earnings | Treasury stock (common) | Total stockholders' equity | |||
---|---|---|---|---|---|---|---|---|---|
Shares | Amount | Shares | Amount | ||||||
Balance, 12/31/02, as reported | -- | -- | 400,000 | $4,000,000 | $840,000 | $100,000 | $3,800,000 | $(120,000) | $ 8,620.000 |
Correction of an error in method of depr. | -- | - | -- | -- | -- | -- | 115,000 | -- | 115,000 |
Balance. 12/31/02, restated | -- | -- | 400,000 | $4,000,000 | $840,000 | $100,000 | $3,915,000 | $(120,000) | $ 8,735,000 |
Preferred stock issued in public offering | 30,000 | $3,000,000 | -- | -- | 150,000 | -- | -- | -- | 3,150,000 |
Stock options exercised | -- | -- | 15,000 | 150,000 | 5,000 | -- | -- | -- | 155,000 |
Net income | -- | -- | -- | -- | -- | -- | 748,000 | -- | 748,000 |
Cash dividends declared: | |||||||||
| -- | -- | -- | -- | -- | -- | (210,000) | -- | (210,000) |
| -- | -- | -- | -- | -- | -- | (78000) | -- | (78,000) |
Balance, 12/31/03 | 30,000 | $3,000,000 | 415,000 | $4,150,000 | $995,000 | $100,000 | $4,375,000 | $(120,000) | $12,500,000 |