Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the

The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscal year:

1

Common Stock, no par, $12 stated value

$4,116,000.00

2

Paid-In Capital from Sale of Treasury Stock

48,600.00

3

Paid-In Capital in Excess of Par-Preferred Stock

211,000.00

4

Paid-In Capital in Excess of Stated Value-Common Stock

464,000.00

5

Preferred 2% Stock, $105 par

7,140,000.00

6

Retained Earnings

40,320,000.00

Prepare the Paid-In Capital portion of the stockholders equity section of the balance sheet using Method 1 of Exhibit 8 There are 375,000 shares of common stock authorized and 85,000 shares of preferred stock authorized. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

image text in transcribed image text in transcribed

EXHIBIT 8 Stockholders' Equity Section of a Balance Sheet Telex Inc. Balance Sheet December 31, 2017 $100,000 10,000 $ 110,000 Stockholders' Equity Paid-in capital: Preferred 10% stock, $50 par (2,000 shares authorized and issued)........ Excess over par ..... Paid-in capital, preferred stock.. Common stock, $20 par (50,000 shares authorized, 45,000 shares issued)...... Excess over par .......................... Paid-in capital, common stock. From sale of treasury stock. Total paid-in capital... Retained earnings...... Total ........................... Treasury stock (600 shares at cost)... Total stockholders'equity... $900,000 190,000 Method 1 1,090,000 2,000 $1,202,000 350,000 $1,552,000 (27,000 $1,525,000 $ 100,000 Stockholders' Equity Contributed capital: Preferred 10% stock, $50 par (2,000 shares authorized and issued).. Common stock, $20 par (50,000 shares authorized, 45,000 shares issued). ..... Additional paid-in capital Total contributed capital... Retained earnings......... Total .................. Treasury stock (600 shares at cost)......... Total stockholders'equity.... 900,000 202,000 Method 2 $1,202,000 350,000 $1,552,000 (27,000) $1,525,000 Point Loma Group Inc. Score: 10/80 Stockholders' Equity (Paid-In Capital Section) October 31, 20XX Paid-in 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_2

Step: 3

blur-text-image_3

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

Quality Audits Are Fun Journal Notes Checklists Questions Observations Evidence Log

Authors: Just Visualize It, The Quality Guy

1st Edition

1726628981, 978-1726628983

More Books

Students also viewed these Accounting questions

Question

Evaluate the integral. dx (x2-2x+2)2

Answered: 1 week ago