(7) Comprehensive

Byrd Companys Contributed Capital section of its January 1, 2016, balance sheet is as follows:

Preferred stock (6%, $50 par, 8,000 shares authorized, 3,400 shares issued and outstanding)	$170,000
Common stock ($10 stated value, 30,000 shares authorized, 12,000 shares issued and outstanding)	120,000
Additional paid-in capital on preferred stock	12,800
Additional paid-in capital on common stock	72,000
Total contributed capital	$374,800

During 2016, Byrd entered into the following transactions:

Jan. 4	Established a compensatory share option plan for its key executives. The options vest after a 3-year service period. The estimated fair value of the options expected to be exercised is $81,000.
Apr. 23	Sold 300 shares of preferred stock at $55 per share.
June 7	Sold 600 shares of common stock at $17 per share.
Sept. 21	Purchased building by paying $9,000 cash and issuing 800 shares of common stock and 450 shares of preferred stock. Common and preferred stock are currently selling for $19 and $57 per share, respectively.
Oct. 12	Reacquired 900 shares of common stock at $19.50 per share. The company uses the cost method to account for treasury stock.
Nov. 15	Issued for $32,000 a combination of 700 shares of common stock and 12% bonds with a face value of $20,000. The common stock is currently selling for $18 per share. No market value exists for the bonds.
Dec. 14	Reissued the 900 shares of treasury stock at $20.50 per share.
28	Distributed a $3.00-per-share dividend on all outstanding preferred stock and a $1.50-per-share dividend on all common stock outstanding on this date (debit Retained Earnings and credit Cash for each dividend).

Required:

1.	Prepare memorandum and journal entries to record the preceding transactions.
2.	Prepare the Contributed Capital section of Byrds December 31, 2016, balance sheet.

CHART OF ACCOUNTS

Byrd Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
172	Building
181	Equipment
189	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
255	Bonds Payable
257	Discount on Bonds Payable
261	Income Taxes Payable

	EQUITY
305	Preferred Stock
311	Common Stock
318	Additional Paid-in Capital on Preferred Stock
320	Additional Paid-in Capital on Common Stock
321	Additional Paid-in Capital on Treasury Stock
325	Paid-in Capital from Share Options
331	Retained Earnings
335	Treasury Stock

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
522	Compensation Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

Labels
Contributed Capital
Amount Descriptions
Total Contributed Capital

Prepare journal entries to record the transactions during 2016. Memorandum entry is not recorded. Additional Instructions

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GENERAL JOURNAL

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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Prepare the Contributed Capital section of Byrds December 31, 2016, balance sheet.Additional Instructions

Byrd Company

Balance Sheet (Contributed Capital section)

December 31, 2016

Label Amount

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