Slate Corporation Had the Following Balances in Its Stockholders' Equity

question 88

Essay

Slate Corporation had the following balances in its stockholders' equity accounts at December 31,2017:
$\begin{array}{|l|c|}\hline \text { Common Stock, \( \$ 10 \) par, 500,000 shares authorized, }\\ \text { 20,000 shares issued}& \$ 200,000 \\\hline \text { Paid-in Capital in Excess of Par Value, Common } & 250,000 \\\hline \text { Retained Earnings } & 500,000 \\\hline \text { Treasury Stock, 1,000 shares } & (20,000) \\\hline \text { Total stockholders' equity}&\$ 930,000\\\hline\end{array}$

The following transactions occurred during 2018:
$$\begin{array} { | l | l | } \hline \text { February } 3 & \text { Sold and issued } 2,000 \text { shares of common stock for } \$ 22 \text { per share } \\\hline \text { May } 10 & \text { Declared a } \$ 0.50 \text { per share dividend on common stock. } \\\hline \text { October } 12 & \text { Sold } 500 \text { shares of the treasury stock for } \$ 20 \text { per share. } \\\hline \text { December } 31 & \text { Net income for the year was determined to be } \$ 75,000 \\\hline\end{array}$$
Based on the above information,prepare a statement of stockholders' equity for 2018.Use the form below.
$\begin{array}{c}\text { Slate Corporation}\\\text { Statement of Stockholders' Equity}\\\text { December 31,2018}\\\begin{array}{|c|c|c|c|c|c|}\hline&&\text { Paid-in } &&\\ &&\text { Capital in }\\&& \text { Excess of } & & & \\&\text { Common } & \text { Par Value, } & \text { Retained } & \text { Treasury } & \\&\text { Stock } & \text { Common } & \text { Earnings } & \text { Stock } & \text { Total Equity }\\ \hline\text { Balance, December }\\ 31,2017 & \$ 200,000 & \$ 250,000 & \$ 500,000 & \$(20,000) & \$ 930,000 \\\hline & & & & & \\\hline & & & & & \\\hline & & & & & \\\hline & & & && \\\hline\end{array}\end{array}$

---

Definitions:

Bartering

A system of exchange in which participants in a transaction directly trade goods or services without using a medium of exchange, such as money.

Democratic Leader

A leadership style in which the leader makes decisions based on the input and consensus of the group, promoting participation and equality among team members.

Participation, Teamwork

Encourages involvement and collaborative efforts among team members to achieve common goals through shared responsibilities.

Collaborative Decisions

Decision-making that involves consultation and contribution from multiple stakeholders or team members.