Building a Balance Sheet The following table presents the long-term liabilities

Question

Building a Balance Sheet The following table presents the long-term liabilities and stockholders' equity of Information Control Corp. one year ago:
        During the past year, Information Control issued 10 million shares of new stock at a total price of $58 million, and issued $35 million in new long-term debt. The company generated $9 million in net income and paid $2 million in dividends. Construct the current balance sheet reflecting the changes that occurred at Information Control Corp. during the year.

Long-term debt
           
           
              $ 65,000,000
           
         
         
           
              Preferred stock
           
           
              4,000,000
           
         
         
           
              Common stock ($1 par value)
           
           
              15,000,000
           
         
         
           
              Accumulated retained earnings
           
           
              135,000,000
           
         
         
           
              Capital surplus
           
           
              45,000,000

Explanation / Answer

Control Corp Particulars Amount in Millions Previous period Amount in Millions current period Amount in Millions current period in total Long term debt $     65,000,000 $ 35,000,000 $ 100,000,000 Preferred Stock $        4,000,000 $                   -   $      4,000,000 Common stock $     15,000,000 $ 58,000,000 $   73,000,000 Retained Earnings $   135,000,000 $    2,000,000 $ 137,000,000 Capital Surplus $     45,000,000 $                   -   $   45,000,000 Total Balance of Shareholder and long term debt $   264,000,000 $ 95,000,000 $ 359,000,000

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