Court casuals has the following beginning balances in its stockholders' equity accounts on january 1, 2021: common stock, $110,000; additional paid-in capital, $4,100,000; and retained earnings, $3,000,000. net income for the year ended december 31, 2021, is $800,000. court casuals has the following transactions affecting stockholders' equity in 2021: may 18 issues 25,000 additional shares of $1 par value common stock for $60 per share. may 31 repurchases 3,500 shares of treasury stock for $40 per share. july 1 declares a cash dividend of $1 per share to all stockholders of record on july 15. hint: dividends are not paid on treasury stock. july 31 pays the cash dividend declared on july 1.august 10 reissues 2,750 shares of treasury stock purchased on may 31 for $56 per share. taking into consideration all the entries described above, prepare the statement of stockholders' equity for the year ended december 31, 20121, using the format provided.

common stock $1,610,000, paid in capital $4,100,000, Retained Earning $3,775,000, Treasury stock $ 184,000, Total stock holding equity $9,669,000

Explanation:

Court casuals statement of stockholder Equity for the year ended December 31 2021

Common Stock. Paid in capital Retained earning Treasury stock Total

$ $ $ $ $

Balance on Jan 1. 110,000. 4,100,000. 3,000,000. 44,000. 7,254,000

Issued share for cash 1,500,000. 1,500,000

Purchase of treasury stock. 140,000. 140,000

Net income. 800,000. 800,000

Cash dividend. (25,000) (25,000)

Balance on Dec 31. 1,610,000. 4,100,000. 3,775,000. 184,000 9,669,000

Workings

Additional shares issued = 25,000 × 60 = 1,500,000

Cash dividend 25,000÷ 1 = 25,000

Re issued shares of treasury stock 2,750 × 56 = 154,000, then the value is deducted from opening balance of stock 154,000 - 110,000 = 44,000

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.