B Corporation has been authorized to issue 24,500 shares of $100 par value, 10%, noncumulative preferred stock and 1,071,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2010, the ledger contained the following balances pertaining to stockholders' equity.
Preferred Stock $166,400
Paid-in Capital in Excess of Par Value-Preferred Stock 20,710
Common Stock 2,129,000
Paid-in Capital in Excess of Stated Value-Common Stock 1,724,500
Treasury Stock-Common (5,550 shares) 61,050
Retained Earnings 82,400
The preferred stock was issued for $187,110 cash. All common stock issued was for cash. In November 5,550 shares of common stock were purchased for the treasury at a per share cost of $11. No dividends were declared in 2010.
(a) Prepare the journal entries for the following. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Options are as follows:
Account/Description Debit Credit:
Paid-in capital in excess of par value-preferred
Paid-in capital in excess of stated value-common
Issuance of preferred stock for cash.
Issuance of common stock for cash.
Purchase of common treasury stock for cash.
Second part of Question:
Complete the stockholdersâ?? equity section of the balance sheet at December 31, 2010. (If amount should be deducted please put either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)
Partial Balance Sheet
December 31, 2010
In excess of stated value-common stock
10% Preferred stock
In excess of par value-preferred stock
$100 par value, noncumulative,
________shares issued and outstanding $ _____________
no par, $ 5 stated value
Total capital stock $__________
Additional paid-in capital
Total additional paid-in capital $________________
Total Paid in Capital $________________
Total Paid-in capital and retained earnings $________________
________________ (common shares) $________________
Total stockholder's equity $_________________
The expert prepares journal entries for issuance, common and purchase stocks.