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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