Question
The following Stockholders' Equity section of the balance sheet prepared as of the end of the current year contains errors. Stockholders' Equity Paid-in capital: Preferred
The following Stockholders' Equity section of the balance sheet prepared as of the end of the current year contains errors.
| Stockholders' Equity | ||
| Paid-in capital: | ||
| Preferred 2% stock, $80 par (125,000 shares authorized and issued) | $10,000,000 | |
| Excess of issue price over par | 500,000 | |
| Paid-in capital, preferred stock | $10,500,000 | |
| Retained earnings | 96,700,000 | |
| Treasury stock (75,000 shares at cost) | 1,755,000 | |
| Dividends payable | 430,000 | |
| Total paid-in capital | $109,385,000 | |
| Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued) | 17,655,000 | |
| Organizing costs | 300,000 | |
| Total stockholders' equity | $127,340,000 |
Prepare a corrected Stockholders' Equity section.
| Paid-In Capital: | ||
| CashDividends PayablePreferred 2% stock, $80 par (125,000 shares authorized and issued)Retained EarningsTreasury stock (75,000 shares at cost)Preferred 2% stock, $80 par (125,000 shares authorized and issued) | $Preferred 2% stock, $80 par (125,000 shares authorized and issued) | |
| CashDividends PayableExcess of Issue Price Over ParOrganizational CostsRetained EarningsExcess of Issue Price Over Par | Excess of Issue Price Over Par | blank |
| CashDividends PayablePaid-in Capital, Preferred StockOrganizational CostsRetained EarningsPaid-in Capital, Preferred Stock | blank | $Paid-in Capital, Preferred Stock |
| CashCommon stock, $20 par (1,000,000 shares authorized, 825,000 shares issued)Organizational CostsRetained EarningsTreasury stock (75,000 shares at cost)Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued) | $Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued) | |
| CashDividends PayableExcess of Issue Price Over ParRetained EarningsTreasury stock (75,000 shares at cost)Excess of Issue Price Over Par | Excess of Issue Price Over Par | blank |
| CashDividends PayablePaid-in Capital, Common StockOrganizational CostsRetained EarningsPaid-in Capital, Common Stock | blank | Paid-in Capital, Common Stock |
| Total paid in capital | $fill in the blank | |
| CashCommon stock, $20 par (1,000,000 shares authorized, 825,000 shares issued)Preferred 2% stock, $80 par (125,000 shares authorized and issued)Retained EarningsTreasury stock (75,000 shares at cost)Retained Earnings | Retained Earnings | |
| Total | $fill in the blank 16 | |
| Dividends PayableCommon stock, $20 par (1,000,000 shares authorized, 825,000 shares issued)Preferred 2% stock, $80 par (125,000 shares authorized and issued)Retained EarningsTreasury stock (75,000 shares at cost)Treasury stock (75,000 shares at cost) | Treasury stock (75,000 shares at cost) | |
| Total stockholders' equity | $fill in the blank |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins
4th Edition
0073527092, 978-0073527093
