Question
The following selected information is from Princeton Company’s comparative balance sheets.
The company’s net income for the year ended December 31, 2017, was $56,000.
At December 31 2017 2016 Common stock, $10 par value $ 121,000 $ 116,000 Paid-in capital in excess of par 583,000 350,000 Retained earnings 329,500 303,500 The following selected information is from Princeton Company's comparative balance sheets At December 31 Common stock, $10 par value Paid-in capital in excess of par583,000 350,000 Retained earnings 2017 2016 $121,000 $116,000 329,500 303,500 The company's net income for the year ended December 31, 2017, was $56,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 2017 Common Stock, $10 Par Beg. bal End. bal. Paid-in Capital in Excess of Par Beg. bal End. bal. Cash received 2. Complete the T-account to calculate the cash paid for dividends during 2017. Retained Earnings Beg. bal End. bal 0
Explanation / Answer
Common stock, $10 par Paid-in capital in excess of par Beg.bal. 116000 Beg.bal. 350000 5000 Issuance of common stock 233000 Issuance of common stock End.bal 121000 End.bal 583000 Cash received $238000 Retained Earnings Beg.bal. 303500 2017 dividends 30000 56000 2017 Net income End.bal 329500 Note: Except dividends amount every amount is entered in the credit side