The ledger of Rolling Hills Corporation contains the following accounts: Common Stock, Preferred Stock, Treasury Stock, Paid-in Capital in Excess of Par—Preferred Stock, Paid-in Capital in Excess of Stated Value—Common Stock, Paid-in Capital from Treasury Stock, and Retained Earnings. Instructions Classify each account using the following table headings. Paid-in Capital Account Capital Stock Additional Retained Earnings Other

Fechter Corporation had the following stockholders’ equity accounts on January 1, 2014: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par—Common Stock $200,000, and Retained Earnings $100,000. In 2014, the company had the following treasury stock transactions. Mar. 1 Purchased 5,000 shares at $8 per share. June 1 Sold 1,000 shares at $12 per share. Sept. 1 Sold 2,000 shares at $10 per […]

Peck Corporation is authorized to issue 20,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2014, the ledger contained the following stockholders’ equity balances. Preferred Stock (10,000 shares) $500,000 Paid-in Capital in Excess of Par—Preferred Stock 75,000 Common Stock (70,000 shares) 350,000 Paid-in Capital in Excess of Par—Common Stock 700,000 Retained Earnings 300,000 […]

The following stockholders’ equity accounts arranged alphabetically are in the ledger of Galindo Corporation at December 31, 2014. Common Stock ($5 stated value) $2,000,000 Paid-in Capital from Treasury Stock 10,000 Paid-in Capital in Excess of Par—Preferred Stock 679,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,600,000 Preferred Stock (8%, $50 par, noncumulative) 800,000 Retained Earnings 1,748,000 Treasury Stock (10,000 common sham) 130,000 Instructions Prepare […]

Irwin Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $2.50 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock $120,000 Paid-in Capital in Excess of Par—Preferred Stock 20,000 Common Stock 1,000,000 Paid-in Capital […]

Translation of Foreign Currency Financial Statements The balance sheet and income statement of Buchanen, Inc., a subsidiary of a U.S.company, is shown below.Buchanen,Inc.operates in New Zealand and prepares its financial statements in New Zealand dollars (NZ$).     Buchanen, Inc.           Balance Sheet and Income Statement         December 31, 2000           (NZ$ in millions) […]

Mendoza Corporation was organized on January 1, 2014. It is authorized to issue 20,000 shares of 6%, $40 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year. Jan.10 Issued 100,000 shares of common stock for cash at $3 per share. Mar. 1 Issued 10,000 shares […]

Consolidation of Balance Sheets Selected items from the unconsolidated financial statements of Tipton Financial Services, Inc., and its wholly owned subsidiary are provided below. Tipton accounts for its investment in Smartcom, Inc., using the equity method. Its investment cost is equal to Smartcom’s net asset book value (shareholders’ equity). Tipton Smartcom (Dollars in thousands) Total assets (including the investment) $ 420,000 $210,000 Total liabilities 230,000 […]

Statement of Consolidation Policy Cabot Corporation, a producer of specialty chemicals and materials, reported the following accounting policies for inter corporate investments: Principles of Consolidation: The Consolidated Financial Statements include the accounts of Cabot Corporation and majority-owned and controlled domestic and foreign subsidiaries. Investments in majority-owned affiliates where control is temporary and investments in 20 to 50 percent-owned affiliates are accounted for on the equity […]

Effects of Consolidation on Selected Accounts and Ratios Selected items from the unconsolidated financial statements of Mammoth Motors Company and its wholly owned subsidiary, Chattel Credit Corp., are provided below. Mammoth uses the equity method to account for its investment in Chattel, and the investment cost is equal to Chattel’s book value of shareholders’ equity. Mammoth Chattel Motors Co. Credit Corp. (Dollars in millions) Total […]