The following selected information is from Princeton Company’s comparative balan

Question

The following selected information is from Princeton Company’s comparative balance sheets.

  
The company’s net income for the year ended December 31, 2017, was $56,000.

At December 31 2017 2016 Common stock, $10 par value $ 121,000 $ 116,000 Paid-in capital in excess of par 583,000 350,000 Retained earnings 329,500 303,500 The following selected information is from Princeton Company's comparative balance sheets At December 31 Common stock, $10 par value Paid-in capital in excess of par583,000 350,000 Retained earnings 2017 2016 $121,000 $116,000 329,500 303,500 The company's net income for the year ended December 31, 2017, was $56,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 2017 Common Stock, $10 Par Beg. bal End. bal. Paid-in Capital in Excess of Par Beg. bal End. bal. Cash received 2. Complete the T-account to calculate the cash paid for dividends during 2017. Retained Earnings Beg. bal End. bal 0

Explanation / Answer

Common stock, $10 par Paid-in capital in excess of par Beg.bal. 116000 Beg.bal. 350000 5000 Issuance of common stock 233000 Issuance of common stock End.bal 121000 End.bal 583000 Cash received $238000 Retained Earnings Beg.bal. 303500 2017 dividends 30000 56000 2017 Net income End.bal 329500 Note: Except dividends amount every amount is entered in the credit side

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