[The following information applies to the questions displayed below.] Tony and Suzie have purchased land for a...

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[The following information applies to the questionsdisplayed below.]
Tony and Suzie have purchased land for a new camp. Now they needmoney to build the cabins, dining facility, a ropes course, and anoutdoor swimming pool. Tony and Suzie first checked with SummitBank to see if they could borrow an additional $1 million, butunfortunately the bank turned them down as too risky. Undeterred,they promoted their idea to close friends they had made through theoutdoor clinics and TEAM events. They decided to go ahead and sellshares of stock in the company to raise the additional funds forthe camp.
Great Adventures has authorized $1 par value common stock. Whenthe company began on July 1, 2021, Tony and Suzie each purchased10,000 shares (20,000 shares total) of $1 par value common stock at$1 per share. The following transactions affect stockholders’equity during the remainder of 2022:
November 5 Issue an additional 128,000 shares ofcommon stock for $10 per share.
November 16 Purchase 12,800 shares of its owncommon stock (i.e., treasury stock) for $29 per share.
November 24 Resell 6,800 shares of treasury stockat $30 per share.
December 1 Declare a cash dividend on its commonstock of $14,760 ($0.10 per share) to all stockholders of record onDecember 15.
December 20 Pay the cash dividend declared onDecember 1.
December 31 Pay $870,000 for construction of newcabins and other facilities. The entire expenditure is recorded inthe Buildings account.
2. Great Adventures has net income of $40,604in 2022. Retained earnings at the beginning of 2022 was $34,850.Prepare the stockholders’ equity section of the balance sheet forGreat Adventures as of December 31, 2022. (Amounts to bededucted should be indicated with a minus sign.)
GREAT ADVENTURES, INC.
Balance Sheet
(Stockholders' Equity Section)
December 31, 2022
Stockholders' equity:
Common Stock $148,000
Additional Paid-In Capital
Total paid-in capital 148,000
Retained Earnings
Treasury Stock
Total stockholders'equity $148,000

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4.4 Ratings (725 Votes)

Great Adventure Inc.
Balance sheet
(Stockholder's Equity Section)
At December 31, 2022
Stockholder's Equity:
Common stock	$ 1,48,000
Additional Paid - in - Capital	$ 11,58,800

Total Paid - in Capital	$ 13,06,800
Retained earnings	$ 60,694
Treasury Stock	$ -1,74,000

Total Stockholder's Equity	$ 11,93,494


Workings:
Paid in capital in excess of par value, Common stock (128000 X $9)	$ 11,52,000
Paid in capital in from sale of treasury stock [6800 X ($30-$29)]	$ 6,800
Additional Paid - in - Capital	$ 11,58,800

Dividend declared	$ 14,760

Treasury Stock [(12800-6800)*29]	$ 1,74,000

	Beginning balance	Addition	Deduction	Ending balance
Common stock	$ 20,000	$ 1,28,000		$ 1,48,000
Additional Paid - in - Capital	$ -	$ 11,58,800		$ 11,58,800
Retained earnings	$ 34,850	$ 40,604	$ 14,760	$ 60,694

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[The following information applies to the questionsdisplayed below.]Tony and Suzie have purchased land for a new camp. Now they needmoney to build the cabins, dining facility, a ropes course, and anoutdoor swimming pool. Tony and Suzie first checked with SummitBank to see if they could borrow an additional $1 million, butunfortunately the bank turned them down as too risky. Undeterred,they promoted their idea to close friends they had made through theoutdoor clinics and TEAM events. They decided to go ahead and sellshares of stock in the company to raise the additional funds forthe camp.Great Adventures has authorized $1 par value common stock. Whenthe company began on July 1, 2021, Tony and Suzie each purchased10,000 shares (20,000 shares total) of $1 par value common stock at$1 per share. The following transactions affect stockholders’equity during the remainder of 2022:November5Issue an additional 128,000 shares ofcommon stock for $10 per share.November16Purchase 12,800 shares of its owncommon stock (i.e., treasury stock) for $29 per share.November24Resell 6,800 shares of treasury stockat $30 per share.December1Declare a cash dividend on its commonstock of $14,760 ($0.10 per share) to all stockholders of record onDecember 15.December20Pay the cash dividend declared onDecember 1.December31Pay $870,000 for construction of newcabins and other facilities. The entire expenditure is recorded inthe Buildings account.2. Great Adventures has net income of $40,604in 2022. Retained earnings at the beginning of 2022 was $34,850.Prepare the stockholders’ equity section of the balance sheet forGreat Adventures as of December 31, 2022. (Amounts to bededucted should be indicated with a minus sign.)GREAT ADVENTURES, INC.Balance Sheet(Stockholders' Equity Section)December 31, 2022Stockholders' equity:Common Stock$148,000Additional Paid-In CapitalTotal paid-in capital148,000Retained EarningsTreasury StockTotal stockholders'equity$148,000

November	5	Issue an additional 128,000 shares ofcommon stock for $10 per share.
November	16	Purchase 12,800 shares of its owncommon stock (i.e., treasury stock) for $29 per share.
November	24	Resell 6,800 shares of treasury stockat $30 per share.
December	1	Declare a cash dividend on its commonstock of $14,760 ($0.10 per share) to all stockholders of record onDecember 15.
December	20	Pay the cash dividend declared onDecember 1.
December	31	Pay $870,000 for construction of newcabins and other facilities. The entire expenditure is recorded inthe Buildings account.