Thomson Corporation Mini Case
Thomson Corporation Stockholder's Equity December 31, 2007
Common stock (40,000 authorized, 25,000 issued and outstanding with par value of $10 per share.) - $250,000.00
Excess paid in capital on common stock - $125,000.00
Retained Earnings - $500,000.00
Total stockholder's equity - $875,000.00
During the current year, Thomson had the following stock transactions:
- The company authorizes the sale of 10% preferred stock, 50,000 shares at par value of $50.
- Sold 20,000 shares of preferred stock at $75 per share.
- Purchased 5,000 shares of common stock at $20 per share for cash.
- Declared and distributed a 2% stock dividend to common stockholders when market price was $25 per share.
- Declared and paid $90,000 in cash dividends to common and preferred stockholders.
- Sold 2,000 shares of treasury stock at $16 per share.
- Net loss is $134,000.
Required:
1. Prepare the stockholder's equity section of the balance sheet for year end 2008.