Case 4 [THOMSON CORPORATION]
Thomson Corporation
Stockholder’s Equity
December 31, 2013
Common stock (40,000 authorized, 25,000 issued and
outstanding with par value of $10 per share.)
Excess paid in capital on common stock
Retained Earnings
$ 250,000.00
$ 125,000.00
$ 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 2013.
Fall 2014-1
