This exercise will allow you to practice preparing the stockholders” equity section of a corporation”s balance sheet and the accompanying note disclosures.
The following accounts appear in the ledger of Zippadeedoda, Inc. after the books are closed at December 31, 2014.
|
Common Stock, $10 par, 700,000 shares authorized; 400,000 shares issued |
$4,000,000 |
|
Common Stock Dividends Distributable |
400,000 |
|
Paid-in Capital in Excess of Par Value—Common Stock |
5,450,000 |
|
Preferred Stock, $50 par, 6% cumulative, 60,000 shares authorized; 40,000 shares issued |
2,000,000 |
|
Paid-in Capital in Excess of Par Value—Preferred Stock |
160,000 |
|
Paid-in Capital from Treasury Common Stock |
30,000 |
|
Treasury Stock (20,000 common shares) (at cost) |
380,000 |
|
Retained Earnings |
990,000 |
Instructions
Prepare the stockholders” equity section of the balance sheet at December 31, 2014, assuming retained earnings is restricted for two reasons: (1) the cost of the treasury shares held, and (2) $175,000 for future plant expansion.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
