41870000 Retained earnings 4272000 Total paid in capital and retained earnings

41870000 retained earnings 4272000 total paid in

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41,870,000 Retained earnings .................................................................................. 4,272,000 Total paid-in capital and retained earnings ............................................ 46,142,000 Less: Treasury stock (20,000 shares common) ......................................................... 200,000 Total stockholders’ equity ................................................ $45,942,000 Supporting balances are indicated in the following T-Accounts. Preferred Stock Bal. 3,000,000 1. 600,000 3,600,000 Paid-in Capital in Excess of Par—Common Stock Bal. 27,000,000 4. 750,000 27,750,000 Paid-in Capital in Excess of Par—Preferred Stock Bal. 200,000 1. Jan. 1 30,000 X $20 7. Sept. 15 10,000 X $1 2. Jan. 1 30,000 X $2 8. Dec. 31 3,600,000 X 8% 3. Feb. 1 50,000 X $5 9. Dec. 31 4,080,000* X 50¢ 4. Feb. 1 50,000 X $15 *[(2,000,000 + 50,000) X 2] – 30,000 + 10,000 5. July 1 30,000 X $10 10. Dec. 31 Net income 6. Sept. 15 10,000 X $10 PROBLEM 15-4 -1- Cash ............................................................................................................. 10,000 Discount on Bonds Payable ....................................................................................... 106 Bonds Payable ................................................................................................ 10,000 Preferred Stock ............................................................................................... Paid-in Capital in Excess of Par—Preferred Common Stock Bal. 10,000,000 3. 250,000 10,250,000 Retained Earnings Bal. 4,500,000 8. 288,000 10. 2,100,000 9. 2,040,000 4,272,000 Treasury Stock 5. 300,000 6. 100,000 200,000 Paid-in Capital from Treasury Stock 7. 10,000 10,000
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Stock ($106 – $50) ...................................................................................... -2- Equipment (500 X $16) ............................................................................................. 8,000 Common Stock ............................................................................................... 5,000 Paid-in Capital in Excess of Par—Common Stock ............................................................................................................ 3,000 (Assuming the stock is regularly traded, the value of the stock would be used.) If the stock is not regularly traded, the equipment would be recorded at its estimated fair value. -3- Cash ............................................................................................................. 10,800 Preferred Stock ............................................................................................... 5,000 Paid-in Capital in Excess of Par—Preferred Stock ($5,974 – $5,000) .............................................................................. Common Stock ............................................................................................... 3,750 Paid-in Capital in Excess of Par—Common Stock ($4,826 – $3,750) .............................................................................. 1,076 Fair value of common (375 X $14) $ 5,250 Fair value of preferred (100 X $65) 6,500 Aggregate $11,750 Allocated to common: $5,250 $11,750 X $10,800 = $ 4,826 Allocated to preferred: $6,500 $11,750
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