Contributed Capital Adams Company records provide the following information on D

ID: 2489746 • Letter: C

Question

Contributed Capital

Adams Company records provide the following information on December 31, 2013

Account Title Amount

Additional Paid-in Capitaln Preferred Stock $17,000

Common Stock 75,000

Premium on Bonds Payable 4,000

Prederred Stock 80,000

Bonds Payable 100,000

Preferred Stock Subscribed 20,000

Retained Earnings 121,000

Additional-Paid-in Capital on Common Stock 84,000

Additional Information

1. Common stock has a $5 par value, 50,000 shares are authhorized, 15,000 shares have been issued and are outstanding.

2. Preferred stock has $100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding

Two hundres shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative, and callable at $130 per share.

3. Bonds apyable mature on January 1, 2017. They carry a 12% annual interest rate, payable semiannually.

Prepare the contributed Capital section of the December 31, 2013, balance sheet for Adam

Explanation / Answer

contributed Capital of Adam's Company

Preferred Stock, $100 par (8%, cumulative, callable at $130, 3000 shares authorized, 800 shares issued and outstanding)

$ 80,000

Preferred Stock Subscribed (200 shares)

$ 20,000

Common Stock, $5 par value (50,000 shares authorized, 15,000 shares issued and outstanding)

$ 75,000

Additional Paid-in Capital on Preferred Stock

$ 17,000

Additional Paid-in Capital on Common Stock

$ 84,000

Total Contributed Capital

$ 2,76,000