The following stockholders\' equity accounts, arranged alphabetically, are in th

Question

The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Pinkston Corporation at December 31, 2014. Prepare the stockholders' equity section of the balance sheet at December 31, 2014. Tidwell Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $40. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 20,000 shares for cash at $53 per share. July 1 Issued 12,000 shares for cash at $57 per share. Journalize the transactions. Post to the stockholders' equity accounts. Indicate the financial statement presentation of the related accounts.

Explanation / Answer

Pinkston Corporation Balance Sheet (partial) As on Dec 31.2014. E13-10B Details Amt $ Stockholders'Equity Common Stock ($5 stated value)         1,900,000 Paid in Capital in excess of par -Common Stock             900,000 Preferred Stock (8%,$100 par, non cumulative )             500,000 Paid in Capital in excess of par -Preferred Stock             280,000 Retained Earning         1,234,000 Treasury Stock(10000 shares )           (120,000) Total Stockholders'Equity         4,694,000 E13-7B-a Journal Entry Date   Account Title Dr $ Cr $ Feb 1. Preferred Stock                                         800,000 Paid in Capital in excess of par -Preferred Stock                                       260,000 Cash         1,060,000 ( issue of 20000 shares @$53) Jul 1. Preferred Stock                                         480,000 Paid in Capital in excess of par -Preferred Stock                                       204,000 Cash             684,000 ( issue of 12000 shares @$57) b Preferred Stock   Details   Amt $ Details   Amt $ Feb 1. By Cash                          800,000 Jul 1. By Cash                        480,000 Paid in Capital in excess of par -Preferred Stock Details   Amt $ Details   Amt $ Feb 1. By Cash                          260,000 Jul 1. By Cash                        204,000 c Tidwell Corporation Balance Sheet (partial) As on Dec 31 ------ Details Stockholders'Equity Amt $ Preferred Stock ($40 par)         1,280,000 Paid in Capital in excess of par -Preferred Stock             464,000

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