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ACC 551 Problem 15-9 (13th Edition)

ACC 551 Problem 15-9 (13th Edition) - equity section of the...

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P15-9   (Stockholders' Equity Section of Balance Sheet)   The following is a summary of all relevant transactions of Vicario Corporation since it was organized in  2010. In 2010, 15,000 shares were authorized and 7,000 shares of common stock ($50 par value) were issued at a  price of $57. In 2011, 1,000 shares were issued as a stock dividend when the stock was selling for $60. Three  hundred shares of common stock were bought in 2012 at a cost of $64 per share. These 300 shares are still in the  company treasury. In 2011, 10,000 preferred shares were authorized and the company issued 5,000 of them  ($100 par value) at $113. Some of the preferred stock was reacquired by the company and later reissued for  $4,700 more than it cost the company. The corporation has earned a total of $610,000 in net income after  income taxes and paid out a total of $312,600 in cash dividends since incorporation. Prepare the stockholders' 
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Unformatted text preview: equity section of the balance sheet in proper form for Vicario Corporation as of December 31, 2012. Account for treasury stock using the cost method. Vicario Corporation Stockholders’ Equity December 31, 2010 Capital Stock Preferred Stock – Par Value $100 per Share, 10,000 Shares Authorized, 5,000 Shares Issued and Outstanding $500,000 Common Stock – Par Value $50 per Share, 15,000 Shares Authorized, 8,000 Shares Issued and 7,000 Outstanding $400,000 Total Capital Stock $900,000 Additional Paid in Capital Paid in Capital in Excess of Par – Preferred $65,000 Paid in Capital in Excess of Par – Common $112,000 Paid in Capital in Excess of Par – Treasury $4,700 $181,700 Total Paid in Capital $1,081,700 Retained Earnings $235,400 Total Paid in Capital & Retained Earnings $1,317,100 Less: Cost of Treasury Stock $19,200 Total Stockholders’ Equity $1,297,900...
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