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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 Adams Company’s records provide the following information on December 31, 2019:

Chapter 15, Problem 16E, Contributed Capital Adams Companys records provide the following information on December 31, 2019:

Additional information:

  1. 1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding.
  2. 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. 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.

To determine

Prepare a contributed capital section of Company A 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 Company A as on December 31, 2019.

Company A
Balance Sheet (Partial)
December 31, 2019
Shareholders' equity
Contributed capital: 
Preferred stock, $...

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