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Problem 11-5A Warning Don\'t show me this message again for the assignment Ok Ca

ID: 2444956 • Letter: P

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Problem 11-5A

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Account Titles and Explanation

Debit

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PRINGLE CORPORATION
Partial Balance Sheet
December 31, 2014

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Problem 11-5A

Pringle Corporation has been authorized to issue 21,000 shares of $100 par value, 7%, noncumulative preferred stock and 1,121,300 shares of no-par common stock.

The corporation assigned a $4 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders’ equity.
Preferred Stock $143,100 Paid-in Capital in Excess of Par Value—Preferred Stock 21,210 Common Stock 1,920,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,641,000 Treasury Stock— (4,610 common shares) 41,490 Retained Earnings 80,900
The preferred stock was issued for $164,310 cash. All common stock issued was for cash. In November 4,610 shares of common stock were purchased for the treasury at a per share cost of $9. No dividends were declared in 2014.

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Explanation / Answer

Particulars Dr Amt Cr Amt Cash A/C Dr        164,310.00 To Preferred Stock        143,100.00 To Paid in capital- preferred stock          21,210.00 Cash A/c Dr    3,561,000.00 To common Stock    1,920,000.00 To Paid in capital    1,641,000.00 Treasury Stock Dr          41,490.00 To Cash          41,490.00