Question2 The ledger of Culver Corporation at December 31, 2017, after the books

Question

Question2 The ledger of Culver Corporation at December 31, 2017, after the books have been closed, contains the following stockholders' equity accounts. Preferred Stock (11,400 shares issued) Common Stock (321,000 shares issued) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings $1,151,400 1,605,000 147,000 1,530,000 2,853,000 A review of the accounting records reveals this information: 1. 2. 3. 4. 5. 6. 7. Preferred stock is 890, s 101 par value, noncumulative. Since January 1, 2016, 11,400 shares have been outstanding: 22,800 shares are authorized. Common stock is no-par with a stated value of $5 per share; 642,000 shares are authorized. The January 1, 2017, balance in Retained Earnings was $2,426,000. On October 1, 67,000 shares of common stock were sold for cash at $10 per share. A cash dividend of $399,000 was declared and properly allocated to preferred and common stock on November 1. No dividends were paid to preferred stockholders in 2016. Net income for the year was $826,000. On December 31, 2017, the directors authorized disclosure of a $155,000 restriction of retained earnings for plant expansion. (Use Note A.)

Explanation / Answer

CULVER CORPORATION Partial Balance Sheet December 31, 2017 Stockholders' Equity Paid-in Capital Capital Stock Preferred stock 1151400 Common stock 1605000 Total capital stock 2756400 Additional paid-in capital Preferred stock 147000 Common stock 1530000 Total additional paid-in capital 1677000 Total paid-in capital 4433400 Retained earnings 2853000 Total stockholders' equity 7286400

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