Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Pearl Corporation’s post-closing trial balance at December 31, 2017, is shown as

ID: 2402980 • Letter: P

Question

Pearl Corporation’s post-closing trial balance at December 31, 2017, is shown as follows.

PEARL CORPORATION
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2017

Dr.

Cr.


At December 31, 2017, Pearl had the following number of common and preferred shares.

Common

Preferred


The dividends on preferred stock are $4 cumulative. In addition, the preferred stock has a preference in liquidation of $50 per share.

Prepare the stockholders’ equity section of Pearl’s balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.)

PEARL CORPORATION
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2017

Dr.

Cr.

Accounts payable $ 361,400 Accounts receivable $ 527,000 Accumulated depreciation—buildings 176,000 Additional paid-in capital in excess   of par—common 1,385,000   From treasury stock 147,000 Allowance for doubtful accounts 29,000 Bonds payable 316,000 Buildings 1,573,000 Cash 205,000 Common stock ($1 par) 198,000 Dividends payable (preferred stock—cash) 3,600 Inventory 555,000 Land 427,000 Preferred stock ($50 par) 550,000 Prepaid expenses 37,000 Retained earnings 319,000 Treasury stock (common at cost) 161,000    Totals $3,485,000 $3,485,000

Explanation / Answer

PEARL CORPORATION Stockholder's Equity At December 31, 2017 Capital stock Preffered stock, $4 cumulative, par value $50 per share, authorized 66,000 shares, issued and outstanding 11,000 shares $   5,50,000 Common stock, par value $1 per share, authorized 5,94,000 shares, issued 1,98,000 shares and outstanding 1,84,000 shares $   1,98,000 Total capital stock $   7,48,000 Additional paid in capital In excess of par value $ 13,85,000 From sale of treasury stock $   1,47,000 Total Paid in capital $ 22,80,000 Retained earnings $   3,19,000 Total Paid in capital and Retained earnings $ 25,99,000 Less : Treasury stock, 14,000 shares at cost. (1,61,000 - 1,47,000 = 14,000) $   1,61,000 Total Stockholder's equity $ 24,38,000

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote