15-12

Penn Company was formed on July 1, 2012. It was authorized to issue309,700shares of $10par value common stock and107,600shares of9% $24par value, cumulative and nonparticipating preferred stock. Penn Company has a July 1June 30 fiscal year.

The following information relates to the stockholders equity accounts of Penn Company.

Common Stock

Prior to the 20142015 fiscal year, Penn Company had118,600shares of outstanding common stock issued as follows.

1.	87,900shares were issued for cash on July 1, 2012, at $31per share.
2.	On July 24, 2012,5,000shares were exchanged for a plot of land which cost the seller $72,000in 2006 and had an estimated fair value of $227,300on July 24, 2012.
3.	25,700shares were issued on March 1, 2013, for $42per share.

During the 20142015 fiscal year, the following transactions regarding common stock took place.

November30,2014	Penn purchased2,600shares of its own stock on the open market at $39per share. Penn uses the cost method for treasury stock.
December15,2014	Penn declared a5% stock dividend for stockholders of record on January 15, 2015, to be issued on January 31, 2015. Penn was having a liquidity problem and could not afford a cash dividend at the time. Penns common stock was selling at $52per share on December 15, 2014.
June20,2015	Penn sold480shares of its own common stock that it had purchased on November 30, 2014, for $22,700.

Preferred Stock

Penn issued40,600shares of preferred stock at $45per share on July 1, 2013.

Cash Dividends

Penn has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2015, are shown below.

Declaration Date	Common Stock	Preferred Stock
12/15/13	$0.39per share	$1per share
6/15/14	$0.39per share	$1per share
12/15/14	$1per share

No cash dividends were declared during June 2015 due to the companys liquidity problems.

Retained Earnings

As of June 30, 2014, Penns retained earnings account had a balance of $696,700. For the fiscal year ending June 30, 2015, Penn reported net income of $42,100.

Prepare the stockholders equity section of the balance sheet, for Penn Company as of June 30, 2015, as it should appear in its annual report to the shareholders. (Enter account name only and do not provide descriptive information.)

PENN COMPANY Stockholders Equity June 30, 2015
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' EquityEAT_1363789142193_0_22455063652227736_003
Preferred Stock
Common Stock
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' EquityEAT_1363789142193_0_22455063652227736_049
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' EquityEAT_1363789142193_0_22455063652227736_066
Paid-in Capital in Excess of Par - Preferred Stock
Paid-in Capital in Excess of Par - Common Stock
Treasury Stock
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' EquityEAT_1363789142193_0_22455063652227736_128
Retained Earnings
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' EquityEAT_1363789142193_0_22455063652227736_162
AddLessEAT_1363789142193_0_22455063652227736_170: Treasury Stock
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' EquityEAT_1363789142193_0_22455063652227736_201	$

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