The following is a list of selected accounts and ending account balances taken f
ID: 2348421 • Letter: T
Question
The following is a list of selected accounts and ending account balances taken from the records of the Adams Company on December 31, 2010:Account Title Amount
Premium 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
Premium 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 callable at $130 per share.
3. Bonds payable mature on January 1, 2014. They carry a 12% annual interest rate, payable semiannually.
Required
Prepare the contributed capital section of the December 31, 2010 balance sheet for the Adams Company. Include appropriate parenthetical notes.
Explanation / Answer
Contributed Capital Preferred Stock, $100 par, 8% $80,000 Common stock, $5 par $75,000 Premium on Common Stock $84,000 Premium on Preferred Stock 17,000 Total Contributed Capital $256,000
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