tollowing ormauonI REQUIRED: Use Ashley Corporation\'s ledger includes the follo
ID: 2390982 • Letter: T
Question
tollowing ormauonI REQUIRED: Use Ashley Corporation's ledger includes the following account balances at December 31, 2011: the Accounts Payable Paid-in Capital in Excess of Par Value, Preferred Accumulated Depreciation Paid-in Capital in Excess of Par Value, Common Cash Retained Earnings Dividends Payable Treasury Stock, Common, 2,000 shares Preferred Stock, 996 $100 par value, 5,000 shares issued Bonds Payable Common Stock, $1 par value, 200,000 shares issued 300,000 100,000 150,000 800,000 100,000 400,000 8,000 60,000 500,000 900,000 200,000 1. The balance sheet prepared at December 31, 2011, would report total paid-in-capital of: 2. The balance sheet prepared at December 31, 2011, would report total legal capital of 3. The balance sheet prepared at December 31, 2011, would report total stockholders' equity of 4. The number of common shares outstanding at December 31, 2011, would be the book value perc tarest cent) preferred stock (Round answer to nearest cent) on the 6. Assuming the Preferred Stock is "Cumulative" and preferred dividends are in arrears for 2010 (last year). If a total of $240,000 of dividends are available for distribution in 2011, how much would the common shareholders receive:Explanation / Answer
1) Total Paid-in-capital at Dec. 31, 2011 = Common Stock+Paid-in-capital in excess of par, Common+Preferred Stock+Paid-in-capital in excess of par value, Preferred
= $200,000+$800,000+$500,000+$100,000 = $1,600,000
Therefore the balance sheet prepared at December 31, 2011, would report total paid in capital of $1,600,000.
2) Legal capital is also known as stated capital. It is equal to sum of par value of common stock and par value of preferred stock.
Legal Capital = Common Stock+Preferred Stock
= $200,000+$500,000 = $700,000
Therefore the balance sheet prepared at December 31, 2011, would report total legal capital of $700,000.
3) Stockholder's Equity = Total paid-in-capital+Retained Earnings-Treasury Stock
= $1,600,000+$400,000-$60,000 = $1,940,000
Therefore the balance sheet prepared at December 31, 2011, would report total stockholder's equity of $1,940,000.
4) Common Shares outstanding = Common Shares issued - Treasury Shares outstanding
= 200,000 shares - 2,000 shares = 198,000 shares
Therefore the number of common shares outstanding at December 31, 2011, would be 198,000 shares.
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