QS 12-15 Computing financing cash flows LO P3

The following information is from Princeton Companys comparative balance sheets.

At December 31	Current Year		Prior Year
Common stock, $10 par value	$	141,000	$	138,000
Paid-in capital in excess of par		605,000		361,000
Retained earnings		351,500		325,500

The companys net income for the current year ended December 31 was $67,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during the current year.

Common Stock, $10 Par
Beg. bal.
End. bal.	0
Paid-in Capital in Excess of Par
Beg. bal.
End. bal.	0
Cash received

2. Complete the T-account to calculate the cash paid for dividends during the current year..

Retained Earnings
Beg. bal.
End. bal.	0