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Don't understand how to get the paid-in capital in excess of par, Common stock & Preferred stock value. Preparing the Equity Section and Recording Dividends
Don't understand how to get the paid-in capital in excess of par, Common stock & Preferred stock value.
Preparing the Equity Section and Recording Dividends In 2015, Lee Ann Adams and some college friends organized The Candy Jar, a gourmet candy company. In 2015, The Candy Jar issued 160,000 of the 300,000 authorized shares of common stock, par value $18, for $2,880,000 and all the 60,000 authorized shares of 10%, $22 par, cumulative preferred stock for $1,320,000. Combined earnings for 2015, 2016, 2017, and 2018 amounted to $1,250,000. Dividends paid in the four years were as follows: 2015-$120,000; 2016-$360,000; 2017-$0; 2018-$180,000. Required: 1. Prepare the equity section of the balance sheet as of December 31, 2018, for The Candy Jar. The Candy Jar Partial Balance Sheet December 31, 2018 Equity Contributed Capital: Preferred Stock $ 1.200.000 Common Stock 2.400,000 Paid-In Capital in Excess of Par, Preferred Stock 120,000 Paid-In Capital in Excess of Par, Common Stock 180,000 Total Contributed Capital $ 4.200,000 Retained Earnings 590,000 Total Equity 4,700,000Step by Step Solution
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