QS 12-9 Computing financing cash flows LO P3

The following selected information is from Princeton Companys comparative balance sheets.

At December 31	2017		2016
Common stock, $10 par value	$	118,000	$	114,000
Paid-in capital in excess of par		581,000		349,000
Retained earnings		327,500		301,500

The companys net income for the year ended December 31, 2017, was $55,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 2017.

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

2. Complete the T-account to calculate the cash paid for dividends during 2017.

Retained Earnings
Beg. bal.
End. bal.	0