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The Digital Systems Company was organized two years ago to take advantage of an Internet opportunity

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The Digital Systems Company was organized two years ago to take advantage of an Internet opportunity. Investors paid $12 a share for 2 million shares with a $4 par value. In the next two years, the company had earnings of $2 million and $3 million, respectively. It paid dividends of $1.2 million and $1.3 million, respectively, in those years. At the end of the first year, Digital sold another 500,000 shares of stock at $15.5 per share. Construct the equity section of Digital's balance sheet initially and at the end of its first and second years in business. An answer of $1.2 million should be entered as 1,200,000.

 

InitiallyCommon stock$  fill in the blank 1

Paid in Excess$  fill in the blank 2

 

 

 

 Total Equity$  fill in the blank 3

 

 

 

At The End Of The First YearCommon stock$  fill in the blank 4

Paid in Excess$  fill in the blank 5

Retained Earnings$  fill in the blank 6

 

 

 

 Total Equity$  fill in the blank 7

 

 

 

At The End Of The Second YearCommon stock$  fill in the blank 8

Paid in Excess$  fill in the blank 9

Retained Earnings$  fill in the blank 10

 

 

 

 Total Equity$  fill in the blank 11