QS 12-15 Computing financing cash flows LO P3

The following information is from Princeton Companys comparative balance sheets.

At December 31	Current Year		Prior Year
Common stock, $10 par value	$	124,000	$	118,000
Paid-in capital in excess of par		585,000		351,000
Retained earnings		331,500		305,500

The companys net income for the current year ended December 31 was $57,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during the current year.

2. Complete the T-account to calculate the cash paid for dividends during the current year..\

Common Stock, $10 Par Beg. bal. End. bal. 0 Paid-in Capital in Excess of Par Beg. bal. End. bal. 0 Cash received Retained Earnings Beg. bal. End. bal. 0