The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscal year: Common Stock , no par, $14 stated value . . . . . . . . . . . . . . . . . . . . .

Chapter 11, Exercises #14

The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscal year:

Common Stock, no par, $14 stated value . . . . . . . . . . . . . . . . . . . . . $ 4,480,000

Paid-In Capital from Sale of Treasury Stock. . . . . . . . . . . . . . . . . . . 45,000

Paid-In Capital in Excess of Par—Preferred Stock. . . . . . . . . . . . . . . 210,000

Paid-In Capital in Excess of Stated Value—Common Stock . . . . . . . 480,000

Preferred 2% Stock, $120 par. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,400,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39,500,000

Prepare the Paid-In Capital portion of the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 4. There are 375,000 shares of common stock authorized and 85,000 shares of preferred stock authorized.

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...