Question: Use the statement of stockholders’ equity to
Use the statement of stockholders’ equity to answer the following questions about Osborn Electronics Corporation:
1. How much cash did the issuance of common stock bring in during 2012?
2. What was the effect of the stock dividends on Osborn’s retained earnings? On total paid-in capital? On total stockholders’ equity? On total assets?
3. What was the cost of the treasury stock that Osborn purchased during 2012? What was the cost of the treasury stock that Osborn sold during the year? For how much did Osborn sell the treasury stock during 2012?
4. How much was Osborn’s net income?
5. Osborne re-valued available-for-sale investments during the year, resulting in an unrealized gain of $9,000. They also consolidated a foreign subsidiary, resulting in a currency translation gain of $10,000. How much was comprehensive income? How much should be added to Osborne’s Accumulated Other Comprehensive Income?
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Osborn Electronics Corporation Statement of Stockholders' Equity For the Year Ended December 31, 2012 Accumulated Other Common Additional Stock s10 Par Total Retained Treasury Comprehensive Stockholders' Equity $ 5,000 S 349,000 1,380,000 70,000 Paid-in Income Capital $100,000 S 80,000 $185,000 $(21,000) 200,000 1,180,000 Earnings Stock Balance, December 31, 2011 Issuance of stock 1 2 3 Net income 70,000 4 Cash dividends (20,000) (20,000) Stock dividends-10% 30,000 42,000 (72,000) 6. Purchase of treasury stock Sale of treasury stock Other comprehensive income Balance, December 31, 2012 (8,000) 3,000 (8,000) 13,000 7 10,000 $330,000 $1,312,000 $163,000 $(26,000) 19,000 $24,000 19,000 $1,803,000 9
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