Question
A partial listing of accounts and ending balances for Carver, Inc., on December 31, 2020, is shown below: Investments in long-term notes receivable $40,000 Bonds
A partial listing of accounts and ending balances for Carver, Inc., on December 31, 2020, is shown below:
Investments in long-term notes receivable | $40,000 |
Bonds payable | 300,000 |
Temporary investment in equity securities available for sale | 120,000 |
Premium on bonds payable | 26,000 |
Common stock | 180,000 |
Subscriptions receivable: common stock | 120,000 |
Additional paid-in capital from preferred stock conversion | 24,000 |
Retained earnings | 650,000 |
Preferred stock | 300,000 |
Long-term investment in equity securities available for sale | 150,000 |
Additional paid-in capital on common stock | 910,000 |
Common stock subscribed | 20,000 |
Goodwill | 46,000 |
Donated capital | 35,000 |
Preferred stock subscribed | 50,000 |
Additional paid-in capital on preferred stock | 45,000 |
Following is additional information relative to the above accounts:
The preferred stock is 8% cumulative with par value of $50. For the preferred stock, 10,000 shares have been authorized, 6,000 shares are issued and outstanding, and 1,000 shares have been subscribed at a price of $65 per share. Each share of preferred stock is convertible into four shares of common.
Bonds payable mature on September 30, 2024. They have a stated interest rate of 10%, payable semiannually. The straight-line method is used to amortize the premium.
Common stock has a par value of $4 per share. For the common stock, 60,000 shares have been authorized, 45,000 shares are issued and outstanding, and 5,000 shares have been subscribed at $32 per share.
Required: Prepare the contributed capital section of the December 31, 2020 balance sheet for Carver, Inc.
SHAREHOLDERS' EQUITY | |
Contributed Capital: | |
CashGoodwillPreferred stockPremium on bonds payablePreferred stock | $ |
Accounts payableCommon stockGain on sale of investmentRetained earningsCommon stock | Common stock |
Accumulated other comprehensive incomeDonated capitalPreferred stock subscribedPrepaid insurancePreferred stock subscribed | Preferred stock subscribed |
Accounts receivableCommon stock subscribedSubscriptions receivable: common stockTemporary investment in equity securities available for saleCommon stock subscribed | Common stock subscribed |
Additional paid-in capital on preferred stockLong-term investment in equity securities available for saleTreasury stockUnearned feesAdditional paid-in capital on preferred stock | Additional paid-in capital on preferred stock |
Additional paid-in capital on common stockBonds payableDiscount on bonds payableLoss on sale of investmentAdditional paid-in capital on common stock | Additional paid-in capital on common stock |
Additional paid-in capital from preferred stock conversionAdditional paid-in capital on treasury stockGain from preferred stock conversionInvestments in long-term notes receivableAdditional paid-in capital from preferred stock conversion | Additional paid-in capital from preferred stock conversion |
Total Contributed Capital | $fill in the blank 15 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started