Shareholders’ Equity Herrera Manufacturing Corporation completed the following transactions during its first year of operation, 2019:
Required:
Prepare the shareholders’ equity section (and any related notes to the financial statements) of Herrera’s balance sheet as of December 31, 2019.
Compute the stockholder’s equity section for Company H
Stockholders’ Equity Section:
It is refers to the section of the balance sheet that shows the available balance stockholders’ equity as on reported date at the end of the financial year.
Compute the stockholder’s equity section for Company H
Company H | |
Shareholder's equity | |
For the year ended December 31,2019 | |
Particulars | Amount in $ |
Contributed Capital: | Â |
 Preferred stock, $50 par (6,000 shares authorized, issued, and outstanding) | 300000 |
Common stock, $5 par (30,000 shares authorized, 15,000 shares issued of which 500 shares are being held as treasury stock) | Â Â Â Â Â Â Â Â Â Â 75,000 |
Additional paid-in capital: | Â |
    On preferred stock (1) |         120,000 |
    On common stock (2) |         255,000 |
    From treasury stock (3) |             2,500 |
Total contributed capital | Â Â Â Â Â Â Â Â 752,500 |
Retained earnings | Â Â Â Â Â Â Â Â Â Â 16,000 |
Accumulated other comprehensive income (loss): | Â |
   Unrealized decrease in value of available-for-sale securities |         (25,000) |
Total contributed capital, retained earnings, and accumulated other comprehensive income | Â Â Â Â Â Â Â Â 766,000 |
Less: Treasury stock at cost (500 common shares at $18) | Â Â Â Â Â Â Â Â Â Â Â Â 9,000 |
Total Shareholders’ Equity |       757,000 |
 (Table 1)
Working notes:
1) Calculate the value of preferred stock:
College Accounting, Chapters 1-27
Financial And Managerial Accounting
Financial & Managerial Accounting
Corporate Financial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial Accounting
Accounting Information Systems
Accounting Information Systems
Management, Loose-Leaf Version
Principles of Macroeconomics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Contemporary Marketing
MKTG 12:STUDENT ED.-TEXT
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Principles of Economics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Foundations of Business (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
College Accounting (Book Only): A Career Approach
Accounting (Text Only)
Financial Accounting
Financial & Managerial Accounting
Statistics for Business & Economics, Revised (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Exploring Economics
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting (Book Only): A Career Approach
Pkg Acc Infor Systems MS VISIO CD
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Survey of Accounting (Accounting I)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Corporate Financial Accounting
Economics For Today
Microeconomics
Purchasing and Supply Chain Management
Cornerstones of Cost Management (Cornerstones Series)
Economics (MindTap Course List)