Adams Companys records provide the following information on December 31, 2019: Account ..............................................................................Title Amount Additional Paid-in Capital

Question:

Adams Company’s records provide the following information on December 31, 2019:
Account ..............................................................................Title Amount
Additional Paid-in Capital on Preferred Stock ..................$ 17,000
Common Stock ........................................................................75,000
Premium on Bonds Payable ....................................................4,000
Preferred Stock .......................................................................80,000
Bonds Payable ......................................................................100,000
Preferred Stock Subscribed ..................................................20,000
Retained Earnings ................................................................121,000
Additional Paid-in Capital on Common Stock ....................84,000
Additional information:
1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding.
2. Preferred stock has a $100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding.
Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative, and is callable at $130 per share.
3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually.


Required:
Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  answer-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1337788281

3rd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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