Thomson Corporation, thanks!

Thomson Corporation, thanks!

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Minicase 4
Thomson Corporation
Thomson Corporation
Stockholder’s Equity
December 31, 2007
Common stock (40,000 authorized, 25,000 issued and
outstanding with par value of $10 per share.)
$
250,000.00
Excess paid in capital on common stock
$
125,000.00
Retained Earnings
$
500,000.00
Total stockholder’s equity
$
875,000.00
During the current year, Thomson had the following stock transactions:

The company authorized 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 2008.

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