(Solution) Assignment for Chapter 12

(Solution) Assignment for Chapter 12 - 100,000 shares...

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Assignment for Chapter 12 (a) HERCULES COMPANY Retained Earnings Statement For the Year Ended December 31, 2008 Balance, January 1, as reported $ 4,500,000 Correction for understatement of net income in 2007 (depreciation error) 400,000 Balance, January 1, as adjusted 4,900,000 Add: Net income 18,000,000 22,900,000 Less: Cash dividends—common $ 7,425,000* Cash dividends—preferred 3,500,000 10,925,000 Balance, December 31 $11,975,000 *(7,500,000 – 75,000) X $1 (b) HERCULES COMPANY Partial Balance Sheet Stockholders’ equity Paid-in capital Capital stock Preferred stock, $500 par value, 7%, cumulative,
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Unformatted text preview: 100,000 shares issued and outstanding $50,000,000 Common stock, $50 par value, 1,500,000 shares issued and 1,485,000 shares outstanding 75,000,000 Total capital stock 125,000,000 Additional paid-in capital In excess of par value - preferred stock $2,500,000 In excess of par value - common stock 7,500,000 Total additional paid-in capital 10,000,000 Total paid-in capital 135,000,000 Retained earnings 11,975,000 Total paid-in capital and retained earnings 146,975,000 Less: Treasury stock—common (15,000 shares) (1,200,000) Total stockholders’ equity $145,775,000...
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