The following accounts and their balances were selected from the unadjusted tria
ID: 2500734 • Letter: T
Question
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, $14 stated value
$4,480,000.00
2
Paid-In Capital from Sale of Treasury Stock
45,000.00
3
Paid-In Capital in Excess of Par-Preferred Stock
210,000.00
4
Paid-In Capital in Excess of Stated Value-Common Stock
480,000.00
5
Preferred 2% Stock, $120 par
8,400,000.00
6
Retained Earnings
39,500,000.00
Prepare the Paid-In Capital portion of the Stockholders’ Equity section of the balance sheet using Method 1 of
Exhibit 7
. 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.
1
Common Stock, no par, $14 stated value
$4,480,000.00
2
Paid-In Capital from Sale of Treasury Stock
45,000.00
3
Paid-In Capital in Excess of Par-Preferred Stock
210,000.00
4
Paid-In Capital in Excess of Stated Value-Common Stock
480,000.00
5
Preferred 2% Stock, $120 par
8,400,000.00
6
Retained Earnings
39,500,000.00
Explanation / Answer
**Number of preferred stock issued = 8,400,000 / 120 = 70000 shares
Number of common stock issued = 4,480,000 / 14 =$ 320,000
Stockholder's equity 2% Preferred stock Authorized 85000 shares out of 70000 shares are issued ,$120par 8,400,000 Common stock authorized 375,000 shares ,out of which 320,000shares are issued ,Stated value = $ 14 4,480,000 Paid-In Capital in Excess of Par-Preferred Stock 210,000 Paid-In Capital in Excess of Stated Value-Common Stock 480,000 Paid-In Capital from Sale of Treasury Stock 45,000 TotAL paid in capital 13,615,000Related Questions
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