Problem:
The company had following balances in its stockholders' equity accounts at the month of December 31, 2004:
Common stock, $10 par, 50,000 shares authorized, 20,000 shares issued $200,000
Contributed capital in excess of par value, common 250,000
Retained earnings 500,000
Treasury stock, 1,000 shares -20,000
Total stockholders' equity $930,000
Following occurred throughout 2005:
1) February 3 - Sold and issued 3,000 shares of the common stock for the sell price of $72 per share.
2) May 10 - Declared the $0.50 per share cash dividend on common stock.
3) October 12 - Sold 500 shares of the treasury stock for $20 per share.
4) December 31 - Net income for year is $75,000.
Required:
1) Make a statement of the stockholders' equity IN GOOD FORMAT for 2005.
2) Show your work. Please show your supporting computation and label them to designate which numbers in statement they’re supporting.