Pearl Corporation’s post-closing trial balance at December 31, 2017, is shown as
ID: 2402980 • Letter: P
Question
Pearl Corporation’s post-closing trial balance at December 31, 2017, is shown as follows.
PEARL CORPORATION
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2017
Dr.
Cr.
At December 31, 2017, Pearl had the following number of common and preferred shares.
Common
Preferred
The dividends on preferred stock are $4 cumulative. In addition, the preferred stock has a preference in liquidation of $50 per share.
Prepare the stockholders’ equity section of Pearl’s balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.)
PEARL CORPORATION
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2017
Dr.
Cr.
Accounts payable $ 361,400 Accounts receivable $ 527,000 Accumulated depreciation—buildings 176,000 Additional paid-in capital in excess of par—common 1,385,000 From treasury stock 147,000 Allowance for doubtful accounts 29,000 Bonds payable 316,000 Buildings 1,573,000 Cash 205,000 Common stock ($1 par) 198,000 Dividends payable (preferred stock—cash) 3,600 Inventory 555,000 Land 427,000 Preferred stock ($50 par) 550,000 Prepaid expenses 37,000 Retained earnings 319,000 Treasury stock (common at cost) 161,000 Totals $3,485,000 $3,485,000Explanation / Answer
PEARL CORPORATION Stockholder's Equity At December 31, 2017 Capital stock Preffered stock, $4 cumulative, par value $50 per share, authorized 66,000 shares, issued and outstanding 11,000 shares $ 5,50,000 Common stock, par value $1 per share, authorized 5,94,000 shares, issued 1,98,000 shares and outstanding 1,84,000 shares $ 1,98,000 Total capital stock $ 7,48,000 Additional paid in capital In excess of par value $ 13,85,000 From sale of treasury stock $ 1,47,000 Total Paid in capital $ 22,80,000 Retained earnings $ 3,19,000 Total Paid in capital and Retained earnings $ 25,99,000 Less : Treasury stock, 14,000 shares at cost. (1,61,000 - 1,47,000 = 14,000) $ 1,61,000 Total Stockholder's equity $ 24,38,000
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