Question

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, 23,385,356 issued and outstanding at the end of last year.
b. Additional paid-in capital: $194,389,000 at the end of the current year and $169,431,000 at the end of last year.
c. Retained earnings / (accumulated deficit): ($82,397,000) at the end of last year.
d. In the current year, net income was $53,983,000 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.)
Balance sheet
current year last year
shareholder equity
Common stock
Additional paid in capital
Accumulated deficit
total stock holder equity

Answer 1

Answer:

Abe's Steakhouse

Abe's Steakhouse

Balance sheet

                                                current year            last year

Shareholders' equity:

Authorized share capital:

Common stock, $0.01 par value; 100,090,000 shares

Common stock                           $235,634           $233,853

Additional paid in capital       194,389,000       169,431,000

Accumulated deficit              -35,552,000       -82,397,000

Total stockholder equity    $159,072,634       $87,267,853

Explanation:

a) Data and Analysis:

Authorized share capital:

Common stock, $0.01 par value; 100,090,000 shares

Issued and outstanding share capital:

Last year =    23,385,356 at $0.01    $233,853

Current year 23,563,356 at $0.01   $235,634

Total issued 46,9848,712 at $0.01   $469,487

Additional paid-in capital:

Last year =    $169,431,000

Current year  194,389,000

Total =         $363,820,000

Retained earnings:

Accumulated deficit   ($82,397,000)

Net income                    53,983,000

Dividend paid                  (7,138,000)

Accumulated deficit ($35,552,000)