Textbook Problem

Contributed Capital Adams Company’s 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.