Answer:
Balance sheet extract as at 31st December,2021
Common stock($255,000+$155,000) $410,000
Paid in capital in excess of par($102,000+$93000) $195,000
Total paid in capital $605,000
Retained earnings($170,000-$85,000) $85,000
Shareholders equity $690,000
Explanation:
The issue of 51,000 shares issue would result in cash proceeds of $357,000 with $255,000 recorded in Common stock account and the balance of $102,000 shown in paid-in capital in excess of par.
The issuance of 34,000 shares would increase cash account by $248,000 while the common stock account and paid-in capital in excess of par would witness increase of $155,000 and $93,000 respectively.
The net income would be reduced by the amount of dividends declared .
