E11-8 (Algo) Reporting Stockholders' Equity LO11-1, 11-3, 11-7 Abe's Steakhouse is the largest upscale steakhouse company in the

Question

2 months ago

11

E11-8 (Algo) Reporting Stockholders' Equity LO11-1, 11-3, 11-7 Abe's Steakhouse is the largest upscale steakhouse company in the

United States, based on total company- and franchisee-owned restaurants. The company's menu features a broad selection of high-quality steaks and other premium offerings. Assume the information below is from a recent annual report: a. Common stock, $0.01 par value; 100,090,000 shares authorized; 23,563,356 issued and outstanding at the end of the current year, 23,405,356 issued and outstanding at the end of last year. b. Additional paid-in capital: $192,389,000 at the end of the current year and $170,431,000 at the end of last year. c. Retained earnings / (accumulated deficit): ($80,797,000) at the end of last year. d. In the current year, net income was $54,583,000 and a cash dividend of $7,138,000 was paid. Required: Prepare the stockholders’ equity section of the balance sheet to reflect the above information for the current year and last year. (Amounts to be deducted should be indicated with a minus sign.)

Business

1 answer:

soldi70 [3.6K] · Answer 1 · 2026-02-27T07:12:02+03:00

Answer:

Shareholders' equity current year last year

Common stock: $235,563.56 $234,053.56

Capital over par value: $192,389,000.00 $170,431,000.00

Retained earnings: -$33,352,000.00 -$80,797,000.00

Total shareholders' equity $159,272,563.56 $89,868,053.56

last year's common stocks = 23,405,356 x $0.01 = $234,053.56

current year's common stocks = 23,563,356 x $0.01 = $235,563.56

last year's capital over par value = $170,431,000

current year's capital over par value = $192,389,000

last year's retained earnings = -$80,797,000.00

current year's retained earnings = -$80,797,000 + $54,583,000 - $7,138,000 = ($33,352,000.00)