Prepare the stockholders’ equity section of the balance sheet at December 31, 20
ID: 2458899 • Letter: P
Question
Prepare the stockholders’ equity section of the balance sheet at December 31, 2014
Pringle Corporation has been authorized to issue 23,100 shares of $100 par value, 6%, noncumulative preferred stock and 1,020,800 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 $140,900 Paid-in Capital in Excess of Par Value—Preferred Stock 21,420 Common Stock 2,200,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,724,000 Treasury Stock— (4,000 common shares) 44,000 Retained Earnings 83,900
The preferred stock was issued for $162,320 cash. All common stock issued was for cash. In November 4,000 shares of common stock were purchased for the treasury at a per share cost of $11. No dividends were declared in 2014.
Explanation / Answer
Account Title Debit Credit Cash 162320 To Preferred Stock 140900 To Paid In Capital in Excess of Par Value-Preferred Stock 21420 Cash 3940000 To Common Stock 2216000 To Paid In Capital in Excess of Par Value-Preferred Stock 1724000 Common Stock 16,000 Discount 28,000 To Treasury Stock 44,000.000 Stockholder's Equity Section: Particulars Amount ($) Preferred Stock 1,40,900 Paid in Capital in Excess of Par Value-Preferred Stock 21420 Common Stock 22,00,000 Paid Up Capital in Excess of Par Value- Common Stock 17,24,000 Treasury Stock 44,000 Retained Earning 83900 Total Stockholder's Equity 42,14,220