# 37. Midtown, Inc. had the following transactions in 2018, its first year of operations: Issued 38.000 shares of common stock. Stock has par value of $1.00 per share and was issued at $23.00 per share. Earned net income of $80,000. Paid no dividends. At the end of 2018, what is total stockholders' equity? multiple choice 0 A. $38,000 O B. $80,000 O c. $954,000 O D. $874,000
Q: For each transaction, determine the impact-increase, decrease, or no effect-on total assets, total…
A: Common shares and preferred shares are the kinds of shares which are issued by the entity in order…
Q: 250 words - Auditing Describe two situations in which the auditors may decide to test 100% of a…
A: Auditors may decide to test 100% of a population when they need a high level of assurance or when…
Q: Data for January for Bondi Corporation and its two major business segments, North and South, appear…
A: Variable Cost :— It is the cost that changes with change in activity of cost driver. Variable cost…
Q: 1. if the company decides to give a bonus to managers based on Residual Income, Which segment’s…
A: Residual Income is the excess income that the company is earning because it is using the assets. It…
Q: CVP Drill #7 Letters Company sells plastic rock climbing walls for $400 each. If the company's fixed…
A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…
Q: Key takeaways/conclusion regarding the Theranos Silicon Valley Disaster
A: The Theranos Silicon Valley disaster is a case related to a biotech startup called Theranos that…
Q: Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit…
A: Break even point = It is the level of sales wherein the company have no profit no loss. below the…
Q: Problem 11-2 Prepare Journal Entries for all of the following transactions: On January 1, 20X8,…
A: The journal entries are prepared to record the transactions on regular basis. The dividend is…
Q: Nash Company purchased a piece of equipment at the beginning of 2022. The equipment cost $398,160.…
A: Firstly we will do sum of total years starting from 8 years as the estimated service life is 8…
Q: Required information [The following information applies to the questions displayed below.] Laker…
A: There are many methods to calculate the inventory like FIFO and LIFO Method, average cost method,…
Q: 2. Nevertire Ltd purchased a delivery van costing $32 000. It is expected to have a residual of…
A: The importance of depreciation by the SLM method is that it allows companies to accurately reflect…
Q: Whispering Corporation issued 350 shares of $10 par value common stock and 105 shares of $50 par…
A: The company issues common and preferred stock to raise money. The company may issue the shares at a…
Q: Direction: Solve the following problems and show your complete solution. 1. Aina, who works in an…
A: Hi student Since there are multiple questions, we will answer only first question. Gross pay of the…
Q: (AACSB) Analysis Identify the categories used on a classified balance sheet to report assets and…
A: Introduction:- A classified balance sheet is a financial statement that reports a company's assets…
Q: Once the estimated depreciation expense for an asset is calculated: Multiple Choice It may be…
A: The accounting estimates such as asset useful lives and salvage value are used for determining and…
Q: Problem 11-25A (Static) Recording and reporting stock transactions and cash accounting cycles LO…
A: The Balance sheet is prepared by the business organizations so as to know the snapshot of an…
Q: A company uses the following standard costs to produce a single unit of output. Direct materials 5…
A: DIRECT MATERIAL PRICE VARIANCE Direct Materials Price Variance is the difference between the actual…
Q: Asparagus Ltd., a successful Canadian company, is able to buy a new type of biodegradable plastic at…
A: The difference between the budgeted fixed overheads and the actual overheads applied to the units…
Q: On December 31, 2023, Berclair Incorporated had 440 million shares of common stock and 3 million…
A: EPS or Earnings per share is a financial ratio that presents the net income attributable to single…
Q: Coastal Corporation issued 25,000 shares of $5 par value common stock at $17 per share and 6,000…
A: Preferred stock are those shares who enjoys the priority over annual dividends payment and payment…
Q: Depreciation is computed by the straight-line method with no salvage value. The compar cost of…
A: NPV denotes the net value of a project, which may be either positive or negative. We calculate…
Q: company reports the following: Cost of goods sold $4,445,700 Average inventory 255,500 Determine…
A: Lets understand the basics. Inventory turnover ratio is a ratio which indicates how many time…
Q: A company sells a product which has a unit sales price of $10, unin variable cost of $2 and total…
A: CVP analysis is used to identify the changes in costs and volume affect a company's…
Q: calculate the total income tax that someone would owe if their annual income was $83,350
A: The total annual income tax is $83,350 The total tax is required to be computed on the tax table…
Q: Kashi Sales, L.L.C., produces healthy, whole-grain foods such as breakfast cereals, frozen dinners,…
A: Journal entry is used for recording the day-to-day business transaction which has some monetary…
Q: Computing Ending Inventory using Dollar-Value LIFO On January 1 of Year 5, Benn Company changed from…
A: Dollar value LIFO method: This method is different model for the last-in first layering model. Under…
Q: Murray Company reports net income of $992,000 for the year. It has no preferred stock, and its…
A: EPS :— It is calculated by dividing income available to common stockholders' by weighted average…
Q: What is the total Machining cost assigned to Product 5?
A: To determine the total Machining cost assigned to Product 5, we need to allocate the Machining cost…
Q: The following report was prepared for evaluating the performance of the plant manager of Marching…
A: Direct material cost is the cost of raw material produced or purchased for producing the final…
Q: Net sales Less: Less: Less: Less: Net income XY CORPORATE SUMMARY REPORT CONTRIBUTION INCOME…
A: The process of collecting and presenting financial data about several business segments within a…
Q: A $485,000 bond issue on which there is an unamortized discount/premium of $32,000 is redeemed for…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable. The…
Q: LO 10-2 10.5 Projecting Revenues, Cost of Goods Sold, and Inventory. Use the following hypothetical…
A: In accounting, the technique of predicting future financial results based on past financial data and…
Q: What is the effective tax rate that a company will end up paying if their year income is $16.7…
A: The tax has to be paid by companies if they are earning an income more than the exemption limit. In…
Q: Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of $50…
A: Total cost to each individual market will consist of different cost to specific market to be added…
Q: Johnson's industry purchased a metal working late for 32,000. This item will be used for business…
A: MACRS { modified accelerated cost recovery system } is mainly used in the U.S. for tax purposes…
Q: Kramer Enterprises reports year-end information from 2022 as follows: Sales (160,000 units) $960,000…
A: Given, Sales= (160,000 units) $960,000Cost of goods sold=$ 640,000Gross margin= $320,000Operating…
Q: Consider Derek's budget information: Materials to be used total $63,300; direct labor totals…
A: SCHEDULE OF COST OF GOODS MANUFACTURED Schedule Of Cost Of Goods Manufactured are those Cost Which…
Q: ! Required information [The following information applies to the questions displayed below.] AirPro…
A: Overheads means all type of indirect costs and expenses being incurred in business. It can be fixed…
Q: Reporting changes in Equipment on Statement of Cash Flows An analysis of the general ledger accounts…
A: CASH FLOW STATEMENT Cash flow statement is additional information to user of financial statement.…
Q: At January 1, 2020, HH Company had plan assets of P250,000 and a defined benefit obligation of the…
A: Defined Benefit Obligation refer to the amount of money that a company owes to its employees in the…
Q: The current year financial statements for Blue Water Company and Prime Fish Company are presented…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: If a company has excess capacity, it is contemplating whether a special order should be accepted.…
A: Special order means the new order which the entity can produce within the available production…
Q: Income statement items: Gain on Sale of Marketable Securities Loss on Sales of Plant Assets Analysis…
A: The Cashflow statement is a part of our financial statement that shows the inflow [cash or cash…
Q: Circuit Masters Incorporated (CMI) is presently operating at 80% of capacity and manufacturing…
A: The variable costs are the cost that has a direct relation with the production level. The fixed cost…
Q: Russo Corporation manufactured 16,000 air conditioners during November. The overhead cost-allocation…
A: Variances are the differences between the values estimated by the entity and the actual values.…
Q: Alyeska Services Company, a division of a major oil company, provides various services to the…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: On May 15, Tamarisk Clothiers borrowed some money on a 4-month note to provide cash during the slow…
A: A note payable is one of the components of the long-term liabilities of a balance sheet. A note…
Q: Based on the following information, calculate the current ratio. Please round up to two decimal…
A: Current ratio = Current assets ÷ Current Liabilities Current Ratio measures business ability to…
Q: Sales are $2.54 million in 2023, $2.64 million in 2024, and $2.44 million in 2025. What is the…
A: Change in amount from 2023 to 2024 = sales in 2024 - sales in 2023 = $2.64 - $2.54 = $0.10…
Q: Computing Revenue and Gross Profit on Long-term Construction Contract Supplier Corp. enters into a…
A: According to IFRS 15, Revenue should be recognized on the basis of Completion Method. In completion…
Hh2.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.The following selected transactions and events occurred during 2013: a. Issued 200 shares of preferred stock for 20,000. b. Sold 800 shares of treasury stock for 2,800. c. Declared and issued a 4% common stock dividend. The market value on the date of declaration was 5 per share. d. Generated a net loss for the year of 16,000. e. Declared and paid the full years dividend on all the preferred stock and a dividend of 15 per share on common stock outstanding at the end of the year. Enter beginning balances for 2013 on STOCKEQ2. Then erase all 2012 entries and enter the transactions for 2013. Save the results as STOCKEQ4. Print the results.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)