Step through each equity event and watch every column walk from its starting balance to its ending one.
$200,000
$350,000
| Event | Common stock | Paid-in capital | Retained earnings | Treasury stock | Total |
|---|---|---|---|---|---|
| Start ← | $100,000 | $50,000 | $200,000 | ($0) | $350,000 |
| Issue 1,000 shares at $25 | $110,000 | $65,000 | $200,000 | ($0) | $375,000 |
| Declare $1 a share cash dividend | $110,000 | $65,000 | $189,000 | ($0) | $364,000 |
| 10% stock dividend, 1,100 shares at $30 market | $121,000 | $87,000 | $156,000 | ($0) | $364,000 |
| Buy 500 treasury shares at $28 | $121,000 | $87,000 | $156,000 | ($14,000) | $350,000 |
| Reissue 200 treasury shares at $32 | $121,000 | $87,800 | $156,000 | ($8,400) | $356,400 |
| Net income for the year | $121,000 | $87,800 | $216,000 | ($8,400) | $416,400 |
Ending retained earnings $216,000 · Ending total equity $416,400
Touch the instrument to see what to notice.