Question
A partial listing of accounts and ending balances for Henry Inc, on December 31, 2016, is shown below: Investments in long-term notes receivable $ 40,000
A partial listing of accounts and ending balances for Henry Inc, on December 31, 2016, 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
Following is additional information relative to the above accounts: | 45,000 |
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- 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, 2020. 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, 2016 balance sheet for Jacob, Inc. Include appropriate parenthetical notes for the common and preferred stock.
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