Stockholders’ Equity section of balance sheet List the errors in the following Stockholders’ Equity section of the balance sheet prepared as of the end of the current year: Stockholders’ Equity Paid-in capital: Preferred 2% stock, $80 par (125,000 shares authorized and issued) $10,000,000 Excess of issue price over par 500,000 Paid-in capital, preferred stock $ 10,500,000 Retained earnings 96,700,000 Treasury stock (75,000 shares at cost 1,755,000 Dividends payable 430,000 Total paid-in capital $109,385,000 Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued 17,655,000 Organizing costs 300,000 Total stockholders’equity $127,340,000

BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169

Solutions

Chapter 12, Problem 12.21EX
Textbook Problem

Stockholders’ Equity section of balance sheet

List the errors in the following Stockholders’ Equity section of the balance sheet prepared as of the end of the current year:

Stockholders’ Equity
Paid-in capital:
Preferred 2% stock, $80 par (125,000 shares authorized and issued) $10,000,000
Excess of issue price over par 500,000
Paid-in capital, preferred stock $ 10,500,000
Retained earnings 96,700,000
Treasury stock (75,000 shares at cost 1,755,000
Dividends payable 430,000
Total paid-in capital $109,385,000
Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued 17,655,000
Organizing costs 300,000
Total stockholders’equity $127,340,000

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 12 Solutions

Corporate Financial Accounting
Ch. 12 - Dividends per share Zero Calories Company has...Ch. 12 - Entries for issuing stock On January 22, Zentric...Ch. 12 - Entries for cash dividends The declaration,...Ch. 12 - Entries for stock dividends Alpine Energy...Ch. 12 - Entries for treasury stock On May 27, Hydro...Ch. 12 - Reporting stockholders equity Using the following...Ch. 12 - Statement of stockholders equity None Cruises Inc....Ch. 12 - Earnings per share Financial statement data for...Ch. 12 - Preferred stock, 1st year 0.85 Dividends per share...Ch. 12 - Dividends per share Lightfoot Inc., a software...Ch. 12 - Entries for issuing par stock On January 22,...Ch. 12 - Entries for issuing no-par stock On May 15, Helena...Ch. 12 - Issuing stock for assets other than cash On...Ch. 12 - Selected stock transactions Alpha Sounds Corp., an...Ch. 12 - Issuing stock Willow Creek Nursery, with an...Ch. 12 - Issuing stock Professional Products Inc., a...Ch. 12 - Entries for cash dividends The declaration,...Ch. 12 - Entries for stock dividends Healthy Life Co. is an...Ch. 12 - Effect of stock split Willeys Grill Restaurant...Ch. 12 - Effect of cash dividend and stock split Indicate...Ch. 12 - Selected dividend transactions, stock split...Ch. 12 - Treasury stock transactions Mystic Lake Inc....Ch. 12 - Treasury stock transactions SprayCo Inc. develops...Ch. 12 - Treasury stock transactions Biscayne Bay Water...Ch. 12 - Reporting paid-in capital The following accounts...Ch. 12 - Stockholders Equity section of balance sheet The...Ch. 12 - Stockholders Equity section of balance sheet...Ch. 12 - Retained earnings statement Sumter Pumps...Ch. 12 - Stockholders Equity section of balance sheet List...Ch. 12 - Statement of stockholders equity The stockholders...Ch. 12 - Common dividends in 20Y3: 20,000 Dividends on...Ch. 12 - Stock transactions for corporate expansion On...Ch. 12 - Selected stock transactions The following selected...Ch. 12 - Total stockholders; equity, 44,436,200 Entries for...Ch. 12 - Entries for selected corporate transactions...Ch. 12 - Common dividends in 20Y3: 25,000 Dividends on...Ch. 12 - Stock transaction for corporate expansion Pulsar...Ch. 12 - Selected stock transactions Diamondback Welding ...Ch. 12 - Total stockholders equity. 11,262.432 Entries for...Ch. 12 - Entries for selected corporate transactions West...Ch. 12 - Comprehensive Problem 4 2. c. Total assets....Ch. 12 - Analyze and compare Amazon.com and Wal-Mart...Ch. 12 - Analyze and compare Bank of America and Wells...Ch. 12 - Analyze Pacific Gas and Electric Company Pacific...Ch. 12 - Analyze Caterpillar Caterpillar Inc. (CAT) is the...Ch. 12 - Analyze and compare BBT and Regions Financial BBT...Ch. 12 - Ethics In Action Tommy Gunn is a division manager...Ch. 12 - Ethics in Action Lou Hoskins and Shirley Crothers...Ch. 12 - Communication Motion Designs Inc. has paid...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Discuss the similarities and differences between the discounted dividend and corporate valuation models.

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

What is motivation?

Foundations of Business (MindTap Course List)

MVA Over the years, McLaughlin Corporation's stockholders have provided 35,000,000 of capital, when they purcha...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)