Problem 11-3A The stockholders’ equity accounts of Terrell Corporation on Januar
ID: 2463092 • Letter: P
Question
Problem 11-3A The stockholders’ equity accounts of Terrell Corporation on January 1, 2014, were as follows. Preferred Stock (9%, $48 par, cumulative, 10,500 shares authorized) $ 388,800 Common Stock ($1 stated value, 1,908,600 shares authorized) 1,074,900 Paid-in Capital in Excess of Par—Preferred Stock 110,800 Paid-in Capital in Excess of Stated Value—Common Stock 1,420,200 Retained Earnings 1,818,600 Treasury Stock (20,100 common shares) 60,300 During 2014, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 25,200 shares of common stock for $124,000. Apr. 14 Sold 8,600 shares of treasury stock—common for $46,100. Sept. 3 Issued 7,000 shares of common stock for a patent valued at $41,200. Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,100. Dec. 31 Determined that net income for the year was $419,600. No dividends were declared during the year.
Date
Account Titles and Explanation
Debit
Credit
Feb. 1
Apr. 14
Sept. 3
Nov. 10
Dec. 31
Preferred Stock
Prepare a stockholders’ equity section at December 31, 2014.
. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date
Account Titles and Explanation
Debit
Credit
Feb. 1
Apr. 14
Sept. 3
Nov. 10
Dec. 31
Explanation / Answer
Stockholders' Equity as of December 31 2014:
Date Account Titles Debit Credit $ $ Feb 1 Cash 124,000 Common stock 25,200 Paid-in capital in excess of stated value 98,800 April 14 Cash 46,100 Treasury stock 25,800 Paid-in capital in excess of cost-Treasury stock 20,300 Sept 3 Patents 41,200 Common stock 7,000 Paid-in capital in excess of stated value 34,200 Nov 10 Treasury stock 6,100 Cash 6,100 Dec 31 Income Summary 419,600 Retained earnings 419,600