Problem 11-5A No. Account Titles and Explanation Debit Credit PRINGLE CORPORATIO
ID: 2471210 • Letter: P
Question
Problem 11-5A
No.
Account Titles and Explanation
Debit
Credit
PRINGLE CORPORATION
Partial Balance Sheet
December 31, 2014
The corporation assigned a $5 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders’ equity.
Preferred Stock $145,500 Paid-in Capital in Excess of Par Value—Preferred Stock 21,560 Common Stock 2,100,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,473,000 Treasury Stock— (5,240 common shares) 57,640 Retained Earnings 83,400
The preferred stock was issued for $167,060 cash. All common stock issued was for cash. In November 5,240 shares of common stock were purchased for the treasury at a per share cost of $11. No dividends were declared in 2014.
Explanation / Answer
date Accounts Title Dr Cr 1 Cash $167,060 Preferred Stock (1455*$100) $145,500 Paid in capital in excess of par-Preferred sTock 21560 (Being issue of 1455 preferred stock for cash at premium) 2 Cash 3573000 Common Stock (420000*5) 2100000 Paid in capital in excess of stated-Common sTock 1473000 (Being issue of 420000 common stock for cash at premium) 3 Treasury Stock 57640 Cash 57640 (Being buy back of 5240 shares i.e 1 share for $11) Partial Balance Sheet Decemeber 31,2014 Stockholder Equity Amount $ Paid in capital 8% Non Cumulative Preferred Stock- 22600 authorized,4550 preferred stock issue and outstanding $145,500 Common Stock-1156600 authorized,420000 issued and outstanding at state value 2100000 Paid in capital in excess of par value -Preferred Stock 21560 Paid in capital in excess of Stated value -Common Stock 1473000 Total paid in capital $3,740,060 Retained earnings 83400 Subtotal 3823460 Less: Treasury stock (5240 common shares) -57640 Total stockholder Equity 3765820