Barker Corp
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Barker Corp. ived a charter authorizing 120,000 shares ofcommon stock at S15 par value per share in receiv During the first year of operations, 40,000 shares were sold at $28 per share. 600 shares were issued payment of a current operating debt ofs18,600. In the first year, the net income was $142,000. During the year dividends of paid to stockholders, At the end of the year, total liabilities were $82,000. Use the given data to compute the following items at the end of the first year (show all computations)
(1) Total liabilities and stockholders' equity
(2) Stockholders' equity
(3) Contributed capital
(4) Issued capital
(5) outstanding capital stock (par)
(6) Unissued capital stock (number of shares)
(7) Paid-In Capital In Excess Of Par Value
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Answer:
1. total liabilities and stockholders equity= (40600*15)+(40000*13)+(600*16)+142000-36000+$82000
2. stockholder's equity= 40000*28+$18600=$1138600
3. contributed capital=18600/600=$31
=(31-28)600
= $1800
4. issued capital stock at par= 40000*15+600*15=$609000
5.outstanding capital stock at par=120000shares-40600shares=79400shres*15=$1191000
6. Unissued capital stock (number of share)=120000shares-40600shares=79400shres
7. paid up capital in excess of par value=total value -par value
=(40000*28+18600)-(40600*15)
=$1138600-$609000
=$529600
