Problem 15-1 (Part Level Submission) On January 5 2017 Blossom Corporation recei
ID: 2430567 • Letter: P
Question
Problem 15-1 (Part Level Submission) On January 5 2017 Blossom Corporation received a charter granting the riaht o issue 5 100 shares otsi00 par value, 7% cu ulative and nonparticipating prete red stock and 4 Oshares o S rvalue common stock. It then completed these transactions. an. 1 Issued 19,900 shares of common stock at $16 per share Feb. 1 Issued to Sanchez Corp. 4,100 shares of preferred stock for the following assets: equipment with a fair value of $52,500; a factory building with a fair value of $166,000; and land with an appraised value of $252,000 uly 29 Purchased 1,800 shares of common stock at $18 per share. (Use cost method.) Aug. 10 Sold the 1,800 treasury shares at $15 per share. Dec. 31 Declared a $0.45 per share cash dividend on the common stock and declared the preferred dividend Dec. 31 Closed the Income Summary account. There was a $172,200 ne income.Explanation / Answer
Retained earnings = $172200 - $5400 - $37655 = $129145.
All other amounts taken directly from the journal entries.
BLOSSOM CORPORATION Stockholders' Equity December 31, 2017 Capital Stock Preferred stock 410000 Common stock 199000 Total capital stock 609000 Additional paid-in capital Paid-in capital in excess of par-preferred stock 60500 Paid-in capital in excess of par-common stock 119400 179900 Total paid-in capital 788900 Retained earnings 129145 Total stockholders' equity 918045