Love Company reported net income of P5,000,000 for the Hannah Company owned 20% of Love Company's preference S. share capital and 50% of the ordinary share capital. Love Company's share capital outstanding comprised the following at year-end: 10% cumulative preference share capital Ordinary share capital 2,000,000 7,000,000 current year.

Love Company reported net income of P5,000,000 for the Hannah Company owned 20% of Love Company's preference S. share capital and 50% of the ordinary share capital. Love Company's share capital outstanding comprised the following at year-end: 10% cumulative preference share capital Ordinary share capital 2,000,000 7,000,000 current year.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...

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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.