Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Contributed Capital Adams Company's records provide the following information on December 31, 2013: Account Title Amount Additional Paid-in Capital on Preferred Stock $ 17,000 Common

Contributed Capital

Adams Company's records provide the following information on December 31, 2013:

Account Title

Amount

Additional Paid-in Capital on Preferred Stock

$ 17,000

Common Stock

$ 75,000

Premium Bonds on Payable

$ 4,000

Preferred Stock

$ 80,000

Bonds Payable

$ 100,000

Preferred Stock Subscribed

$ 20,000

Retained Earnings

$121,000

Additional Paid-in Capital on Common Stock

$ 84,000

Additional information:

1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding.

2. Preferred stock has a $100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative, and callable at $130 per share.

3. Bonds payable mature on January 1, 2017. They carry a 12% annual interest rate, payable semiannually.

Prepare the Contributed Capital section of the December 31, 2013, balance sheet for Adams.

Contributed Capital

1.

Preferred Stock, $100 par (8%, cumulative, callable at $130, 3000 shares authorized, 800 shares issued and outstanding)

$ ?????

2.

Preferred Stock Subscribed (200 shares)

$ ?????

3.

Common Stock, $5 par value (50,000 shares authorized, 15,000 shares issued and outstanding)

$ 75,000

4.

Additional Paid-in Capital on Preferred Stock

$ 17,000

Additional Paid-in Capital on Common Stock

$ 84,000

Total Contributed Capital

$ ?????

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Reporting In India Financial And Social Performance Disclosures

Authors: V.K. Vasal

1st Edition

8177081217, 978-8177081213

More Books

Students also viewed these Accounting questions