Problem 11-2A (Part Level Submission) The stockholders\' equity accounts of Flin
ID: 2590461 • Letter: P
Question
Problem 11-2A (Part Level Submission) The stockholders' equity accounts of Flint Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized) Common Stock ($4 stated value, 300,000 shares authorized Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (5,000 common shares) $300,000 1,000,000 15,000 480,000 686,500 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders ' equity Feb. 1 Issued 5,000 shares of common stock for $30,000. Mar. 20 Purchased 1,000 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.60 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017, Dec. 31 Determined that net income for the year was $276,100. Paid the dividend declared on December 1Explanation / Answer
Flint Corporation Partial Balance Sheet December 31, 2017 Stockholders' Equity Paid-in Capital Capital Stock Preference Shares 300,000 Common Stock 1,020,000 Total Capital Stock 1,320,000 Aditional Paid-in Capital Paid-in Capital in Excess of Par Value - Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value - Common Stock 490,000 Total Additional Paid-in Capital 505,000 Total Paid-in Capital 1,825,000 Retained Earnings 789,200 Total Paid-in Capital & Retained Capital 2,614,200 Less: Treasury Stock (47,000) Total Stockholders' Equity 2,567,200 Retained Earning Statement December 31, 2017 Beginning Balance 686,500 Cash Dividend - Preferred Stock - 8% X $300,000 (24,000) Cash Dividend - Common Stock - $0.60 X 249,000 Shares (149,400) Sub-total 513,100 Net Income - 2017 276,100 Ending Balance - Dec 31, 2017 789,200