Adams company\'s records provide the following Adams Company\'s records provide
ID: 2492026 • Letter: A
Question
Adams company's records provide the following Adams Company's records provide the following information on December 31, 2013: Additional information: Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 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. Bonds payable 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 Adams.Explanation / Answer
A)
Contributed Capital is the capital contributed by shareholders including preferred Stock holders.(means common shareholders and preferred share holders )
Computation of Contributed Capital for Adams on december 31,2013
Particulars Amount in $
preferred Stock, 8% ,$ 100 par, callable at $ 130 per share
3,000 shares are authorized , but only 800 shares were issued and outstanding 80,000
Common Stock @ $ 5, 50000 shares issued
15000 shares were issued and outstanding 75,000
Paid capital in excess of par value , preferred stock 17,000
Paid capital in excess of Stated value ,common stock 84,000
Total contributed Capital 256,000
The shares which have not been issued and alloted to the shareholders are not placed in the calculation of contributed capital
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