The following selected information is from Princeton Company’s comparative balan
ID: 2527376 • Letter: T
Question
The following selected information is from Princeton Company’s comparative balance sheets.
The company’s net income for the year ended December 31, 2016, was $61,000.
1. Complete the below table to calculate the cash received from the sale of its common stock during
Common Stock, $10 Par Paid-in Capital in Excess of Par
Beg. bal. Beg. bal.
Issuance of common stock
End. bal. 0 End. bal. 0
2. Complete the below table to calculate the cash paid for dividends during 2016.
Retained Earnings
Beg. bal.
2016 dividends
End. bal.
At December 31 2016 2015 Common stock, $10 par value $ 131,000 $ 126,000 Paid-in capital in excess of par 593,000 355,000 Retained earnings 339,500 313,500Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Common Stock, $10 Par Paid-in Capital in Excess of Par Beginning Balance 126,000.00 355,000.00 Issuance of comon stock 5,000.00 238,000.00 Ending Balance 131,000.00 593,000.00 Retained Earnings Beg. bal. 313,500.00 Add net Income 61,000.00 Retained earnings before dividend 374,500.00 Retained earnings after dividend 339,500.00 Dividend = 374500 - 339500 35,000.00