Question: A company had the following balances in its stockholders' equity accounts at December 31, 2004:
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Common stock, $10 par, 50,000 shares authorized, 20,000 shares issued
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$200,000
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Contributed capital in excess of par value, common
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250,000
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Retained earnings
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500,000
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Treasury stock, 1,000 shares
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-20,000
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Total stockholders' equity
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$930,000
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The following occurred during 2005:
[A] February 3 - Sold and issued 3,000 shares of common stock for a sell price of $72 per share.
[B] May 10 - Declared a $0.50 per share cash dividend on common stock.
[C] October 12 - Sold 500 shares of treasury stock for $20 per share.
[D] December 31 - Net income for the year is $75,000.
Required:
[A] Make a statement of stockholders' equity for 2005.
[B] Please show your supporting computation and label them to indicate which numbers in the statement they are supporting.