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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Contributed Capital A partial list of the accounts and ending account balances taken from the post-closing trial balance of Jordan Corporation on December 31, 2019, is as follows:

Chapter 15, Problem 13P, Contributed Capital A partial list of the accounts and ending account balances taken from the

Additional information;

  1. 1. Common stock is no-par, with a stated value of $10 per share. 90,000 shares are authorized, 50,000 shares are issued and outstanding, and 6,000 shares have been subscribed at a price of $28 per share.
  2. 2. Preferred stock has a $50 par value, 8,000 shares are authorized, 6,000 shares are issued and outstanding, and 700 shares have been subscribed at a price of $70 per share. Each share is cumulative is convertible into 5 shares of common stock, and pays a 7% annual dividend. Dividends are not in arrears.
  3. 3. Bonds payable mature on July 1, 2028. They carry a 12% annual interest rate, payable semiannually. The premium is being amortized using the straight-line method.

Required:

Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Jordan. Include appropriate parenthetical notes for the common and preferred stock.

To determine

Prepare a contributed capital section of Corporation J as on December 31, 2019.

Explanation

Contributed Capital: Contributed capital is the total amount of cash or assets received by company in exchange for the issue of shares. This is also known as paid-in capital.

Prepare a contributed capital section of Corporation J as on December 31, 2019.

Corporation J
Shareholders' Equity
December 31, 2019
Contributed capital 
Preferred stock, 7%, 550 par (cumulative and convertible into 5 shares of common stock, 8,000shares authorized. 6,000 shares issued. and outstanding)$300,000
Preferred stock subscribed (700 shares, $70 subscription price)$35,000
Common stock...

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